Decoding Tax Fine-Print, Finance Bill, 2021 – Clause By Clause Analysis

The Hon'ble Finance Minister presented the Finance Bill 2021 in an unprecedented environment of economic slowdown. The Budget focused on measures to boost the economy and as promised by the Hon'ble Finance Minister, it is a "Budget Like Never Before". However, as it is said, the 'Devil lies in the details'. In the Finance Bill, several amendments have been proposed which are path breaking and may have far-reaching consequences. Continuing with the reform of Direct-tax administration of faceless assessment and appeals, we are also going to see a faceless Income-tax Appellate Tribunal. There could be a debate whether the same would be an efficacious justice delivery system. Other structural changes in the tax administration, for e.g., abandoning the Settlement Commission, constitution of a Dispute Resolution Committee and Board of Advance Ruling, have been proposed.