Coimbatore based Chartered Accountant and Columnist G.Karthikeyan gave his opinions on Union Budget 2021-22, that was presented on Feb.1.
Through the press release, Karthikeyan said the IMF as well as the Economic Survey have projected a growth rate of 11% for India during the coming fiscal, in the backdrop of the Covid 19 pandemic.
It is noteworthy that India is the only country with a double digit growth rate projected for the next year. The budget for financial year 2021-22 has a total outlay of Rs.34.83 lakh crores with all round allocation to various sectors.
On the tax front it is heartening to note there will be no Covid cess as many expected prior to the budget announcements. However, while many also expected an increase in the basic taxation limit as well as an increase in mediclaim deductible (especially in the light of COVID), the same did not materialize.
On the Income tax procedural revamp side, faceless assessments have now been extended to apply to tribunals as well and the time limit for reopening of assessments has been reduced from 6 to 3 years, which is a welcome move. Dispute resolution procedures for small taxpayers have been strengthened.
The announcement on double taxation relief on pension related income to NRIs will infuse confidence in the minds of Indians who live abroad. The relaxation for One person company (OPC) on number of days to 120 from 183 and other conditions will act as an incentive to start business in India.
Source: Press Release.