AMA: Union Budget

AskMeAnything
1

The wait is finally over! Just like you, we too were waiting for one of the most important events of the financial year - Budget 2021.

It was announced by FM Nirmala Sitharam on 1st Feb 2021.
This year, Budget 2021 is going to be the first paperless budget.

The income tax changes introduced in Budget 2021 are -

  1. Higher limit for Tax audit
  2. ITR filing for senior citizens made optional
  3. Updated Pre-filled XML
  4. More time to claim deduction u/s 80EEA
  5. Reduced double taxation for NRIs

You can read about the Budget 2021 changes.

Tax QNA Banner-07
Tax QNA Banner-074984Ă—2473 286 KB

Check out the Budget dashboard for a Recap of Budget 2021.

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Healthcare should be treated as a priority. Only once we successfully recover from this, our economy can gain momentum again.

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Can you please provide me more information with respect to “Tax on PF interest from contribution exceeding 2.5 lakhs” Does this includes employer contribution and VPF?

4

The audit limit increased from 5 crores to 10 crores. Do I have to file for tax audit if my turnover is less than 10 crore?

5

Hey @HarshitShah

In the budget 2021, the tax audit limit is increased from INR 5 crore to INR 10 crore.

However, even when the turnover is less than INR 10 crore, the other conditions to be fulfilled are:

  1. 95% of the transactions should be digital
  2. Profits should be greater than 6% of the turnover

Hope this helps!

6

Hey @ViraajAhuja47

Employee’s contributions to EPF was tax-deductible under section 80C while the employer’s contribution is completely tax-free. However, as per the recent announcement in Budget 2021 , interest earned on annual PF contribution exceeding INR 2.5 lakhs from April 2021 will now be taxable. Any withdrawal after the specified period (5 years) is exempt from income tax.

Hope this helps!