On February 1, 2021, the first historic Digital Union Budget of India for the year 2021-22 was presented by the Hon’ble Union Minister of Finance, Smt. Nirmala Sitharaman which was held live in the Chamber Auditorium.
Shri Ashwin Mehadia, President of the Chamber, said that this time the budget has a mixed response. The government has given some relief to the traders and has also placed conditions on them. For example, if the income of senior citizens above 75 years is coming from pension and interest, then they do not have to file any return and have to pay tax on the income earned on business.
The time limit for re-opening of income tax cases which was earlier 6 years has been reduced to 3 years. To end the dispute of Small Tax Payers, â€˜Dispute Resolution Committeeâ€™ will be constituted as per the zone. There has been no change in the rules regarding personal income tax. The limit of income tax audit isÂ increased from 5 crore to 10 crore, but it is stipulated that 95% of their transactions should be digital.
Sanjay K., Vice-President of the Chamber said that the conditions in One Man Company have now been removed. This will facilitate small and medium traders in doing business by forming a company.
The partner from the partnership firm will have to pay income tax on income exceeding the capital contribution. Those who buy affordable houses have been given an extension of 1 year to pay a temporary deduction of Rs. 1.50 lakh on loan interest, which will lead to an increase in the housing sector. Income tax exemption has been given on projects for renting affordable housing for migrant workers.
The convener of the Chamberâ€™s direct tax committee, CA Sandeep Jotwani said that some new provisions have been made in TDS. For example, if we deduct 2% TDS from a service provider, that service provider will be required to file an income tax return. If they do not file the return then the service recipient will have to pay double or 5% whichever is higher and those whose annual turnover is above Rs. 10 crore are required to deduct 0.01% TDS.
The co-convenor of the Chamber’s direct tax committee, C.A. Yash Verma said that if the share of employees in EPF / ESI is not deposited on time by the company, then income tax will not be exempted on the contribution and the annual amount of employee’s share in the provident fund is more than 2.5 lakhs and interest is earned on it. If so, the taxpayer has to pay income tax.
The convener of the Chamber’s indirect tax committee, C.A. Ritesh Mehta said that G.S.T. is going to be 5 years, so no relief has been given in GST rates. The audit which was earlier Rs. 5 crore, it has been completely abolished and the taxpayer has to give a Self Declaration.
Shri Ramavatar Totla, Secretary of the Chamber, said that in this year’s budget, special emphasis has been laid on health schemes and clean water to improve the living standards of common man and women. Changes in infrastructure will create new employment opportunities. M.S.P. attempts have been made to increase the income of farmers by increasing the rate but no concession has been given to small and medium traders, another component of the economy.
With this budget, the business community had high hopes that a special package for small and medium traders would be introduced along with raising the personal income limit as well as reducing the income tax slab. The increase in funds for Nashik Metro including Nagpur in the present budget is welcome.
On this occasion, the President of the Chamber – Ashwin Mehadia, Vice President – Arjundas Ahuja, Sanjay K. Agrawal, Secretary – Ramavatar Totla, IPP – Hemant Gandhi, Treasurer – Sachin Puniyani, Joint Secretary – Umesh Patel, Shabbar Shakir, Public Relations Officer – Rajubhai Makhija, Executive Member – Rajan Agrawal, Madhur Banga, C.A. Girish Mundada, C.A. Ritesh Mehta, C.A. Sandeep Jotwani.