Finance Minister Nirmala Sitharaman while presenting the union budget 2021-22 announced that Senior citizens above 75 years of age with only pension income will be exempted from filing tax returns. Banks paying the interest would deduct the tax on their behalf.
However, the budget did not have much to offer the common man as no changes in income tax slabs were introduced by Nirmala Sitharaman on Monday.
In a major move, Sitharaman reduced the time limit for reopening of income tax assessment cases to three years from six years, while for serious tax fraud cases where concealment of income is Rs 50 lakh or more it would be 10 years.
She said to end the uncertainty in the minds of taxpayers over reopening of assessment cases, the time limit for a reduction in limit for reopening to assessment to three years from six years earlier.
"The government has proposed to review over 400 old exemptions in indirect taxes and is going to begin extensive consultation from October 2021", Sitharaman said.
Sitharaman said the tax department will notify rules to remove hardships of double taxation faced by of non-resident indians (NRIs).
Also, pre-filled income tax returns with details on capital gains from listed securities, dividend income and interest income from banks and post offices would be available soon, she said.
For small taxpayers with taxable income up to Rs 50 lakh, a dispute resolution committee would be set up.
She said 1.10 lakh taxpayers have availed the Direct Tax Vivad Se Vishwas scheme to resolve tax disputes.
She also said that income tax return filers increased to 6.48 crore in 2020 from 3.31 crore in 2014.
The Budget also proposed to start faceless Income Tax Appellate Tribunal (ITAT).
Sitharaman also announced a major relief for states and said that the government has accepted the recommendation of the 15th Finance Commission to give 41 percent of share of taxes to states.
(With inputs from PTI.)
