Finance Act 2021 notified by Ministry of Law and Justice

Finance Act 2021, giving effect to the Central Government’s financial proposals for the financial year 2021-2022 has been notified by Government.

Sections 2 to 88 shall come into force on the 1st day of April 2021.

Sections 108 to 123 shall come into force on such date as may be notified by Central Government.

Brief important Changes are as follows:

• No Change in Income Tax Slabs
• GST Audit Abolished
• Prefilled ITRs – Additionally Capital Gain, Dividend Income to be prefilled
• TDS on Purchase of Goods
• Exemption for filing ITR for Senior Citizens in specific cases
• Discontinuance of Income-Tax Settlement Commission w.e.f. February 2021
• Reduction of time limit for completing the assessment
• Expense Disallowance in case of Payment by employer of employee contribution to a fund on or before due date
• Extending due date for filing return of income in some cases, reducing time to file belated return and to revise original return and also to remove difficulty in cases of defective returns
• Taxation of proceeds of high premium unit-linked insurance policy
• TDS/TCS on non-filer at higher rates

The notification is given below for reference: