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Budget expectations: Will fiscal discipline trump populist demands? One shouldn’t be too surprised if the govt tilts in favour of fiscal discipline given that this has been an equally difficult year for the govt too (Photo: iStock)Premium Amit Singhania, Suyash Sinha The govt is more likely to adopt a balanced approach that marries fiscal discipline with some measures to boost consumption Share Via Read Full Story Many are touting Union Budget, 2021 as a seminal one that will hold the key to several of the problems that India’s economy currently faces. But, a more discerning perspective of the nation’s present economic state suggests that the government is more likely to adopt a balanced approach that marries fiscal discipline with some measures to boost consumption. In fact, one shouldn’t be too surprised if the government tilts in favour of fiscal discipline given that this has been an equally difficult year for the government too.
Finance Minister Nirmala Sitharaman in her Budget speech on Monday kept income-tax rates untouched but announced a slew of measures to simplify tax administration, ease compliance, and reduce litigation to boost revenue. These include a dispute resolution committee for small taxpayers, a faceless income tax appellate tribunal (ITAT), addressing double taxation concerns for non-resident Indians, exempting senior citizens from income tax return filing, and reducing the reassessment window to three years from six years in normal cases. Besides, the Budget proposed abolishing the under-performing, authority of advance ruling, to replace it with a two-member board of advance ruling. It will be chaired by an officer not below the rank of chief commissioner. Advance rulings of such a board shall not be binding on the applicant or the department and could be appealed before the high court.
Taxpayers' Budget 2021 wishlist: COVID exemptions, standard capital gains rates and more Apart from long pending demands of hike in limits under Sections 80-C and 80-D of Income-tax Act, they also expect COVID-linked tax concessions, more attractive new tax regime and simplified capital gains structure Aprajita Sharma January 27, 2021 | Updated 23:59 IST Optimistic over a Budget like never before - as Finance Minister Nirmala Sitharaman has promised to deliver it on February 1 - taxpayers are hoping for never-seen-before tax relief. Apart from long pending demands of hike in limits under Sections 80-C and 80-D of Income-tax Act, they also expect COVID-linked tax concessions, more attractive new tax regime and simplified capital gains structure. We have listed key expectations that deserve FM Sitharaman's attention:
Budget 2021: Expect 'wild card entry' on NRI residential status In case of no relaxation in residential status, NRIs would have to pay advance tax to avoid penal interest The non-resident Indians (NRIs) stuck in India during COVID-19 lockdown are a worried lot. As they take stock of their residential status for the financial year 2020-21, they expect a relief from the government on residency rules. In order to determine the tax liability in India for those settled abroad, first we need to check their residency status for a particular financial year. A non-resident Indian may qualify as an Indian resident for tax purposes if she meets one of the following two conditions - i) stay in India for a year is 182 days or more or ii) stay in India for the immediately four preceding years is 365 days or more and 60 days or more in the relevant financial year.