In the backdrop of an extremely challenging landscape, the Budget 2021 has successfully managed to meet the requirements from several quarters. The tax proposals, though falling short of any rationalization of the direct tax structure, are sufficient to provide relief to the taxpayer. Measures like exempting senior citizens (75 years and above) who only have pension and interest income from filing income tax returns, increase in limit for tax audit for persons who carry out 95% of their transactions digitally, and an additional deduction of Rs. 1,50,000 for loans taken up till March 2022 for purchase of affordable housing are all steps in the right direction. Additionally, the proposal to extend the eligibility for claiming tax holiday for start-ups by one more year and incentivising the incorporation of a one-person company to enable them to grow will give a further fillip to the burgeoning start-up culture in the country.
