Finance Act 2021 changes income-tax rates, surcharges, TDS/TCS, assessments and dispute resolution mechanisms, and customs tariffs.
The Finance Act, 2021 prescribes income-tax rates for the 2021-22 assessment year, surcharge slabs, and a 4% Health and Education Cess, and enacts wide amendments to the Income-tax Act including new provisions on deemed transfers on reconstitution/dissolution of specified entities, capital-gains and goodwill treatment, IFSC-related tax measures, modified TDS/TCS rules (including new sections for non-filers, high-value purchases and specified senior citizens), revised assessment and notice procedures (including pre-notice enquiry under section 148A), and institutional reforms for settlement and advance rulings; it also revises customs and excise tariff classifications and duty rates.

Finance Bill 2021 revises tax rates, tightens assessment procedures, creates new dispute and advance ruling bodies, and updates tariffs.
Finance Bill, 2021 prescribes new income tax rates, surcharge bands and a Health and Education Cess; inserts substantive direct tax provisions (notably sections 9B and 89A) addressing deemed transfers on reconstitution/dissolution and taxation of retirement benefit accounts in notified countries; revises exemptions, capital gains and valuation rules; strengthens assessment procedure by substituting sections 147-151 and inserting 148A with pre notice enquiry and specified authority approval; creates Interim Boards for Settlement, Boards for Advance Rulings and a Dispute Resolution Committee; and enacts new withholding/collection provisions (194P, 194Q, 206AB/206CCA) while extensively amending customs, tariff and indirect tax schedules and rates.

Deemed transfer on dissolution: receipt of assets by partners taxed as the entity's income under fair market value rules.
A new deemed transfer rule treats capital assets or stock-in-trade received by a partner/member from a specified entity on dissolution or reconstitution as a deemed transfer by that entity; resultant profits or gains are assessable as the specified entity's income in the year of receipt, with fair market value on the date of receipt deemed to be full consideration. A separate reconstitution provision taxes money or assets received by a specified person as income of the specified entity under capital gains, computed by a statutory formula (A = B + C + D) defining A as chargeable income, B as money received, C as fair market value of assets received, and D as capital account balance, subject to prescribed adjustments and exclusions.