{"id":2337,"date":"2021-02-16T06:02:12","date_gmt":"2021-02-16T06:02:12","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=2337"},"modified":"2021-02-16T06:02:15","modified_gmt":"2021-02-16T06:02:15","slug":"implications-of-union-budget-2021-on-income-tax","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/","title":{"rendered":"Implications of Union Budget 2021 on Income Tax: A Complete Guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\">On 01.02.2021, our Union Finance Minister, Ms\nNirmala Sitharaman, had presented the Union Budget 2021. Through which, there\nwere several minor, and significant changes were made in the provisions of the Income\nTax Act 1961. In this blog, we will discuss the Implications of Union Budget\n2021 on Income Tax 1961.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a7b2c1a1b4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a7b2c1a1b4\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Concept_of_Income_Tax\" title=\"Concept of Income Tax\">Concept of Income Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Reasons_to_Make_Changes_in_Income_Tax_Act\" title=\"Reasons to Make Changes in Income Tax Act\">Reasons to Make Changes in Income Tax Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Key_Implications_of_Union_Budget_2021_on_Income_Tax_Act\" title=\"Key Implications of Union Budget 2021 on Income Tax Act\">Key Implications of Union Budget 2021 on Income Tax Act<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Tax_Slab\" title=\"Tax Slab\">Tax Slab<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#No_Need_to_File_ITR\" title=\"No Need to File ITR\">No Need to File ITR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Increased_Threshold_Limit\" title=\"Increased Threshold Limit \">Increased Threshold Limit <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Reduction_in_Time_Limit_to_File_Belated_or_Revised_Return\" title=\"Reduction in Time Limit to File Belated or Revised Return\">Reduction in Time Limit to File Belated or Revised Return<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Reduction_in_Time_Limit_to_Process_ITR\" title=\"Reduction in Time Limit to Process ITR\">Reduction in Time Limit to Process ITR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Delayed_Payments_of_EPF_are_not_eligible_for_Deduction\" title=\"Delayed Payments of EPF are not eligible for Deduction\">Delayed Payments of EPF are not eligible for Deduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#No_Advance_Tax_Liability_on_the_Dividend_Income\" title=\"No Advance Tax Liability on the Dividend Income\">No Advance Tax Liability on the Dividend Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Provisions_of_Section_80_IBA\" title=\"Provisions of Section 80 IBA\">Provisions of Section 80 IBA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Deduction_of_Interest_under_Section_80_EEA\" title=\"Deduction of Interest under Section 80 EEA\">Deduction of Interest under Section 80 EEA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Increment_in_the_Exemption_Limit\" title=\"Increment in the Exemption Limit\">Increment in the Exemption Limit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Interest_on_PF_Contribution\" title=\"Interest on PF Contribution\">Interest on PF Contribution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Definition_of_Small_Companies\" title=\"Definition of Small Companies\">Definition of Small Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Constitution_of_Dispute_Resolution_Committee\" title=\"Constitution of Dispute Resolution Committee\">Constitution of Dispute Resolution Committee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Establishment_of_Faceless_Income_Tax_Appellate_Tribunal\" title=\"Establishment of Faceless Income Tax Appellate Tribunal \">Establishment of Faceless Income Tax Appellate Tribunal <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#TDS_on_Purchase_of_Goods\" title=\"TDS on Purchase of Goods\">TDS on Purchase of Goods<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Applicability_of_Provisions\" title=\"Applicability of Provisions \">Applicability of Provisions <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Non_Applicability_of_Provisions\" title=\"Non Applicability of Provisions \">Non Applicability of Provisions <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Rate_of_TDS\" title=\"Rate of TDS\">Rate of TDS<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/swaritadvisors.com\/blog\/implications-of-union-budget-2021-on-income-tax\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Income_Tax\"><\/span>Concept of Income Tax<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term Income Tax means the tax levied on the\ntotal income earned by the assessee in the previous financial year. Further, in\ncommon parlance, the term Income means the regular periodic return to a person\nfrom his\/ her activities.<\/p>\n\n\n\n<p>Further, it shall be significant to take in the consideration that it is mandatory for every taxpayer, who is earning income above the specified limit to <strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/income-tax-return-filing\">file Income Tax Return<\/a><\/strong> on a periodic basis. Also, take into note that winning from crossword puzzles, lotteries, or income from winning of shows is subject to Income Tax as well.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/union-budget-2021\/\">Union Budget 2021: Key Highlights of the First Digital Budget<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_to_Make_Changes_in_Income_Tax_Act\"><\/span>Reasons to Make Changes in Income Tax Act<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The main reasons behind the changes made in the\nprovisions of Income Tax Act are as follows:<\/p>\n\n\n\n<ul><li>To Ease out the\nWorking of Law;<\/li><li>To Simplify the\nInterpretation of Law;<\/li><li>To Minimise the\nChance of Difficulty in the Enforcement of Law;<\/li><li>To Confirm\nSeamless Tax System;<\/li><li>To Ensure\nContinuous Flow of Credit;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Implications_of_Union_Budget_2021_on_Income_Tax_Act\"><\/span>Key Implications of Union Budget 2021 on Income Tax Act<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key implications of Union Budget 2021 on Income\nTax Act are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax_Slab\"><\/span>Tax Slab<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Based on the\nUnion Budget 2021, no changes has been made in the Income Tax Slabs for\nsalaried people.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"No_Need_to_File_ITR\"><\/span>No Need to File ITR<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Now, there is no need for Senior\nCitizens to file Income Tax Return. However, the same is possible only after\nsatisfying the conditions as follows:<\/p>\n\n\n\n<ul><li>He must be the Resident of India;<\/li><li>Must be of age 75 years or more in the previous\nfinancial year;<\/li><li>Should have only Pension or\/ and Interest Income as\nthe source of earning;<\/li><li>Needs to furnish a declaration to the respective bank\nin the form and manner prescribed (with effect from 01.04.2021);<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Increased_Threshold_Limit\"><\/span>Increased Threshold Limit <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Based on the\nUnion Budget 2021, the threshold limit for the Tax Audit has been increased from\nRs 5 crore to Rs 10 crores. However, the same is possible only after satisfying\nthe conditions as follows:<\/p>\n\n\n\n<ul><li>The aggregate of all the cash receipts in the previous\nfinancial year must not exceed 5% of the total receipts, and;<\/li><li>The aggregate of all the cash payments in the previous\nfinancial year must not exceed 5% of the total payments, i.e., 95% of the\ntransactions must be from consideration other than cash. Also, the same will be\napplicable form the Assessment Year 2022 to 2023.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reduction_in_Time_Limit_to_File_Belated_or_Revised_Return\"><\/span>Reduction in Time Limit to File Belated or Revised Return<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The time limit for filing the Revised or Belated Return\nhas been reduced to 3 months.<\/p>\n\n\n\n<p><strong>For\nexample:<\/strong> Normally, the due date to file the revised return by a taxpayer for the\nAssessment Year 2021 to 2022 is 31.03.2022. However, the same has been changed\nto 31.12.2021. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reduction_in_Time_Limit_to_Process_ITR\"><\/span>Reduction in Time Limit to Process ITR<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another one of\nthe major implications of Union Budget 2021 on Income Tax is that the time\nlimit to process an ITR and completion of assessment under the provisions of\nthe section 143 (1) and 143 (3) of the Income Tax Act has been reduced by 3\nmonths, i.e., 12 months from the end of the Assessment Year to 9 months.<\/p>\n\n\n\n<p><strong>For example:<\/strong> the time limit to complete\nan assessment for the Assessment Year 2021 to 2022 is 31.03.2022.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Delayed_Payments_of_EPF_are_not_eligible_for_Deduction\"><\/span>Delayed Payments of EPF are not eligible for Deduction<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Now, based on\nthe budget speech given by our Finance Minister, the delayed payments of EPF\ncontribution made by employers in the employees account will not be eligible to\nbe claimed as deduction. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"No_Advance_Tax_Liability_on_the_Dividend_Income\"><\/span>No Advance Tax Liability on the Dividend Income<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Now, based on the budget speech given by our Finance Minister, there will be no advance tax liability levied on the dividend income earned under the provisions of the <a href=\"https:\/\/en.wikipedia.org\/wiki\/The_Income-tax_Act,_1961\">Income Tax Act 1961<\/a>. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Provisions_of_Section_80_IBA\"><\/span>Provisions of Section 80 IBA<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Based on the provisions of the section 80 IBA, if in\ncase an assessee is involved in the business of developing and constructing\naffordable housing projects, then, in that case, 100% of such profits will be\nallowed as deduction. However, the same is possible only after the fulfilment\nof the conditions as follows:<\/p>\n\n\n\n<ul><li>The project must\nbe approved on or after 01.06.2016 but prior to 31.03.2021. But, the same\ncondition has been extended now for one or more year, i.e., the project should\nbe approved prior to 31.03.2022.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Deduction_of_Interest_under_Section_80_EEA\"><\/span>Deduction of Interest under Section 80 EEA<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Section 80 EEA of the Income Tax Act 1961 provides deduction\nof interest up to Rs150000 in regard to the loan taken for the purchase of\nresidential house property. However, the same is possible only after satisfying\nthe conditions as follows:<\/p>\n\n\n\n<ul><li>Loan\n     must be taken on or after 01.04.2019 but before 31.03.2021. However, the\n     said time period has been extended\n     up to 31.03.2022;<\/li><li>The\n     stamp duty value of a property&nbsp;must not exceed Rs 45 lakhs;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Increment_in_the_Exemption_Limit\"><\/span>Increment in the Exemption Limit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another one of\nthe major implications of Union Budget 2021 on Income Tax is that the exemption limit of the annual\nreceipts under the provisions of section 10 (23C) (iiiad) and 10 (23) (iiiae)\nof the Income Tax Act, for University\/ Educational Institutions and\nHospital\/Institutions has been&nbsp;<strong>increased from Rs. 1 crore to Rs 5\ncrore.<\/strong><strong><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Interest_on_PF_Contribution\"><\/span>Interest on PF Contribution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Now, based on\nthe budget speech given by our Finance Minister, if the interest earned on PF\nContribution is above 2.5 lakh, the same will taxable under the provisions of\nthe Income Tax Act 1961.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_Small_Companies\"><\/span>Definition of Small Companies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Now, based on the budget speech given by our Finance\nMinister, the definition of Small Companies has been amended as follows:<\/p>\n\n\n\n<ul><li>The Paid up share capital must be more\nthan Rs 2 crore. The existing limit was Rs 50 lakhs;<\/li><li>The Annual Turnover of the company must\nnot be more than Rs 20 crore. The existing limit was Rs 2 crore;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Constitution_of_Dispute_Resolution_Committee\"><\/span>Constitution of Dispute Resolution Committee<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another one of\nthe major implications of Union Budget 2021 on Income Tax is that a Dispute Resolution Committee\n(DRC) has been constituted for those taxpayers who have a <strong>returned\nIncome<\/strong>&nbsp;of&nbsp;<strong>up to Rs 50 lakhs<\/strong>&nbsp;and&nbsp;<strong>disputed\ntax of up to Rs 10 lakhs.<\/strong><strong><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Establishment_of_Faceless_Income_Tax_Appellate_Tribunal\"><\/span>Establishment of Faceless Income Tax Appellate Tribunal <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To reduce the cost of compliance for the taxpayer,\nthe government has decided to establish Income Tax Appellate Tribunal under the\nprovisions of the Income Tax Act.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TDS_on_Purchase_of_Goods\"><\/span>TDS on Purchase of Goods<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Any person, who being a\u00a0buyer\u00a0is responsible for\u00a0paying any amount\u00a0to any resident for\u00a0the purchase of any goods\u00a0of the\u00a0worth or aggregate of such a value, which is exceeding Rs 50 lakhs in any previous year, will,\u00a0at the time of credit of such amount to the account of the seller, or at the time of payment\u00a0thereof by any mode,\u00a0whichever is earlier, can deduct\u00a0an amount equal to\u00a00.1 % of such a sum exceeding Rs 50 lakhs\u00a0as income tax.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_Provisions\"><\/span>Applicability of Provisions <span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The applicability of the provisions concerning TDS\ncan be summarised as:<\/p>\n\n\n\n<ul><li>To the buyer\nwhose Gross Receipts\/ Sale\/ Turnover in the previous financial year exceeds the\nthreshold of Rs 10 crore, and;<\/li><li>The aggregate\namount of purchase by such a particular buyer in the previous financial year\nexceeds Rs 50 lakhs; <\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Non_Applicability_of_Provisions\"><\/span>Non Applicability of Provisions <span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The non-applicability of the provisions concerning\nTDS can be summarised as:<\/p>\n\n\n\n<ul><li>The transaction\non which the tax is deductible under the provisions of the Act;<\/li><li>The transaction must\nbe covered by TCS (Tax Collected at Source) under section 206C;<\/li><\/ul>\n\n\n\n<p>However, it shall be relevant to state that if in\ncase the transaction is covered under section 206 (1H), then, in that case,\nprovisions of TDS will become applicable on that transaction as well.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rate_of_TDS\"><\/span>Rate of TDS<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  <strong>Particulars<\/strong>\n  <\/td><td>\n  <strong>Rate<\/strong>\n  <\/td><\/tr><tr><td>\n  Seller having PAN\n  <\/td><td>\n  0.1%\n  <\/td><\/tr><tr><td>\n  Seller not having PAN\n  <\/td><td>\n  5%\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, the main purpose behind the implications of Union Budget 2021 on Income Tax Act was to make the interpretation, operation, enforcement, and working of law simplified along with the seamless tax system. Also, in case of any query or dilemma, contact our proficient and well experienced experts at <strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/\">Swarit Advisors<\/a><\/strong>, who are ever ready to cater to all your issues and doubts. Moreover, they will assist you in the process of Income Tax Return Filing as well.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/companies-share-capital-and-debentures-amendment-rules-2021-notified-by-mca\/\">Companies (Share Capital and Debentures) Amendment Rules 2021<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 01.02.2021, our Union Finance Minister, Ms Nirmala Sitharaman, had presented the Union Budget 2021. Through which, there were several minor, and significant changes were made in the provisions of the Income Tax Act 1961. In this blog, we will discuss the Implications of Union Budget 2021 on Income Tax 1961. Concept of Income Tax [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2338,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[41,50],"tags":[389],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2337"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=2337"}],"version-history":[{"count":3,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2337\/revisions"}],"predecessor-version":[{"id":2341,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2337\/revisions\/2341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/2338"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=2337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=2337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=2337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}