Opportunities for CA/CMA/CS in Budget 2021

From January 29, 2021, Senses started to rise and gained 4,446 points and it reached its peak of 50,731 on February 5, 2021. Along with Sensex, on January 26, 2021, IMF also projected 11.5 percent growth for India.

Not just Sensex and IMF, Budget 2021 brings joy to many in the business and professional world, we analyzed the expected opportunities provided or taken away from CA/CMA/CSs with the Budget 2021.

New Opportunities for CA/CMA/CSs

1. The provisions are now more complicated due to the introduction of new sections or amendments to the existing sections, particularly in Income Tax law, which provides ample space for planning and also results in litigation.
2. A  New Dispute Resolution Committee u / s 245MA w.e.f. 1-4-2021 for small and medium tax players, and due to it a new field of Income-tax practice will arise. The eligibility criteria are returned income of Rs. 50 lakhs or less (if there is any return) and the total amount of the proposed variation in the specified order is Rs. 10 lakhs or less.
3. New Board for Advance Ruling in replacement Authority for the Advance ruling according to Section 245Q read with 245R (2) \ (4) is intended for faster solution of cases that may open up new ways.
4. Exemption under section 80-1AC along with section 54GB has been stretched by one year till March 31, 2022, for all the eligible start-ups. It will provide more opportunities for starting such start-ups.
5. With the introduction of a new section 148A with respect to all the inquiries ahead of issuing notice under section 148 as applies for non-search or expected cases, although Faceless will also provide more opportunities.

Reduction in CA \ CMA \ CS opportunities

1. The GST audit is expected to go by amendment of 35 and 44 in the CGST Act (F.Y. 2019-20 still to be completed by 28.02.21) as per the applicability date. A lot of representation is being done against it and it is hoped that the provision too may not be finally passed.
2. Limits for tax audit under section 44AB in particular cases extended to 10Cr with effect from 2021-22, earlier the limit was ₹ 5 Cr. It is clearly observable that the government is reducing the tax audit burden and thus in this way the future of CA/CMA’s seems no brighter. However, it is also worth noting that not everyone will be able to get it’s benefits, due to the 95% digital transaction limit.
3. Faceless ITAT is also introduced with the insertion of the subsection in section 255 for providing better efficiency, accountability, and transparency.
4. Scraping of Income-tax Settlement Commission on or after February 1, 2021, according to the introduced amendment u/s 245C
5. Presumptive taxation u/s 44ADA for LLPs provision is intended to be removed with effect from Assessment year 2022-23. However it is allowed for HUF, so can HUF act as a professional?
6. With Budget 2021, ITR filing has been exempted with section 194P for senior citizens (75 or above age) having income through pension and Interest Income. However, Banks can still outsource this work as they are doing with TDS return filing.
7. Decrease the time limit for late or Revised returns Under Section 139(5)/ (4) with effect from Assessment Year 2022-23 by 3 months.
8. Removed search and seizure assessment u/s 153A/C and merged it with re­assessments u/s 148. It should be noted that with it, this central circle will be abolished and all assessments will be faceless, but the period of 6/10/16 years is reduced to 3/10 years. The government also faced great criticism for making the Central Circle faceless with effect from 01.04.2021.