Finance Bill’ 2021- Paradigm shift in the provisions relating to Income Tax Search and Seizure Assessments and Income Tax Settlement Commission

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The Hon'ble Union Finance Minister Nirmala Sitharaman presented the Union Budget 2021 of India on the 1st of February, 2021.  Budget 2021 aims to revive an economy that plunged into the deepest recession in the COVID-19 pandemic. In her address, Hon'ble Madam Sitharaman announced that India's budget deficit is set to jump to 9.5 percent of Gross Domestic Product in 2020-21 as per Revised Estimates.  

This is well above 3.5 per cent of GDP projected in the Budget Estimates. A slump in state revenues amid the Covid-19 pandemic has led to a sharp rise in deficit and market borrowing.  

This was Sitharaman's third budget under the National Democratic Alliance (NDA) government headed by Prime Minister Narendra Modi. In a significant departure from the tradition, this year's Budget was not printed and was only made available in a digital format. 

In significant changes to the taxation process, among other tax measures, the Hon'ble Finance Minister recommend paradigm change to the provisions relating to "Assessment in case of Search or requisition viz. SECTION 153A to 153D" and Income Tax Settlement Commission.