How Does The Latest Budget Updates Serve The Ca/cma/cs’s ?

By Author: GSPU Management Consultancy
Total Articles: 2
Comment this article

IMF has already displayed a growth of 11.5 % for India before the Budget as on 26th Jan 2021. Now the Budget 2021 has added many benefits to the industry.
Emerging Opportunities for CA/CMA/CS’s
The introduction of new sections or amendments in the existing sections especially in I-Tax law has made the provisions more complicated offering more ample room for planning and consequent litigation.
For small /medium taxpayers new area of I-Tax practise shall emerge due to formation of New Dispute Resolution Committee u/s 245MA w.e.f. 1-4-2021 with the eligibility criteria as the returned income should be Rs. 50 lakh or less (if there is a return) and the aggregate amount of variation proposed in specified order is Rs. 10 lakh or less.
In place of Advance ruling as per Section 245Q read with 245R (2) \ (4) a new board is introduced for speedy disposal of cases that may open up new avenues.
For Eligible Start-ups,Exemption u/s 80-1AC along with sec 54GB has been extended by 1 year till 31.03.2022 , which will grant extended opportunity for opening up such start-ups.
Introduction of New Section ...
... 148A w.r.to enquiries before issuing Notice u/s 148 as applicable for non-search or requisition cases are although faceless shall also provide more opportunities.


Dilution in Opportunities for CA/CMA/CS’s
GST Audit is expected to go as per applicability date by amendment in sec 35 and 44 of CGST Act (F.Y. 2019-20 still to be completed by 28.02.21). With lots of collisions against it we predict that the provision may not ultimately pass also.
Even Though the Govt tries to reduce the Tax audit responsibilities in each financial year on tax payers,the limits for tax audit u/s 44AB in certain cases has increased from Rs.5 to Rs.10 Cr wef A.Y. 2021-22 ,which will not benefit the CA/CMA’s. However practically most of the tax payers may not be able to get it’s benefit due to restriction of 95 % digital transaction.
Under the section 255 Faceless ITAT is introduced as a subsection,yielding greater efficiency, transparency and accountability.
On or after 1st February, 2021 as per proposed amendment u/s 245C Income-tax Settlement Commission may be abolished.
Exempting the HUFs, provision of Presumptive taxation u/s 44ADA for LLPs proposed to be abolished wef A.Y. 2022-23
As per the latest section 194P for senior citizens (75 years & above) having Pension and Interest income,the ITR filing has been exempted.But Banks may outsource this as the TDS return filing has been outsourced to CA Firms hence,it will be only complimentary return filing.
The time limit for belated/Revised returns u/s 139(5)/ (4) wef A.Y. 2022-23 is reduced to 3 months.
Abolishing search & seizure assessment u/s 153A/C and merging it with re­assessments u/s 148. Please note with this Central Circle be abolished and all assessment shall be faceless. However the existing period of 6/10/16 years shall reduce to 3/10 years. There was great criticism of making Central Circle also faceless as done now w.e.f. 01.04.21.

Conclusion
Updating our knowledge & business operations with Artificial Intelligence, Forensic Audits, Valuation will be an added benefit for the traditional procedure of attestation (Audit etc) and Consultancy (I-Tax, GST etc).Thus it will be a great support for the trade being beneficial for our long years of passion & hard work.This may not be crisp & compact for the Government initiative of making all I-Tax assessments faceless and reduction in Audit requirements in each budget.

visit: https://www.facebook.com/GSPUManagementConsultancy

We specialise in helping businesses, whether startups or multinationals, to achieve their goals. We are here to show you the opportunities with wisdom and foresight.