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The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi gives ex-post facto approval for the Government amendments to the Finance Bill, 2021 (enacted on 28^th March, 2021 as the Finance Act, 2021). 

The amendments were essential to clarify and rationalise the proposals further and address stakeholders concerns arising out of amendments proposed in the Finance Bill. 

Objectives

• The Government amendments to the Finance Bill, 2021 shall provide equity and inclusiveness to all the taxpayers by addressing stakeholders concerns arising out of amendments proposed in the Bill.
• The Government amendments to the Finance Bill, 2021 are tax proposals which shall generate timely revenue for the Government and streamline existing provisions by addressing grievances of the taxpayers.

Amendments

• The Finance Bill, which gives effect to tax proposals for FY22, was passed in Parliament in March with 127 amendments.
  
• Among other changes, it has provided for a 10-year income tax exemption to the National Bank for Financing Infrastructure and Development.
  
• Private development finance institutions were provided a five-year tax exemption, which can be extended by another five years. 
• The amendment also clarified that the equalization levy would not be applicable on consideration of the sale of goods or services which are owned by persons resident in India or by a permanent establishment of a non-resident in India.

Source: PIB, Indian Express