February 5 2021

Union Budget 2021 – Summary

Source: IBFD Tax Research Platform News

The government has proposed to retain the current corporate and personal tax rates, extend incentives for start-ups and provide exemptions for financial services to assist taxpayers in view of the COVID-19 pandemic, among other measures in the Finance Bill 2021.

Relevant measures in the Bill include:

  • clarifying the scope of the equalization levy;
  • exempting certain transfers of assets and shares from capital gains tax for certain financial service companies;
  • extending the incentive period for start-ups;
  • clarifying the tax treatment of certain income earned by individuals;
  • clarifying the definition of "liable to tax";
  • increasing the safe harbour limit for transfers of residential units, subject to conditions;
  • amending the provisions to rationalize the minimum alternative tax;
  • enhancing the scope of "supply" for goods and services tax purposes;
  • amending tax audit, assessment and appellate proceedings; and
  • changing reporting requirements and statutory due dates.

The Bill can be downloaded here