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No Major Tax Announcements In The New Budget

by Shatakshi Gupta

There is no major change in the budget regarding income tax.  That is, like last year, you will get two options to file income tax return this year. There is only one major announcement in the budget that pensioners over the age of 75 will not have to file tax returns. These are pensioners whose income is only from pension and interest in the bank.  The tax will be deducted by the bank itself as TDS.

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Apart from this, some small changes have been made.  Important among them is that the deadline for opening old returns has been reduced from 6 years to 3 years in cases of income below 50 lakhs. With this, only 10-year-old returns can be opened on the evidence of more than 50 lakh tax evasion. For this also the permission of the Chief Commissioner of Income Tax will be required.

 At the moment, there has been no major change in filing the income tax return. Investment in the old system will continue to receive tax rebate as before. At the same time, under the National Pension System (NPS), in the new system that came last year, only a rebate of up to 50 thousand will be available. It is a good option for those who are young and who have not made any investment or want to avoid the hassle of keeping the investment documents for tax exemption. 

These are the Tax related announcements

  • The Finance Minister said that on the 75th anniversary of independence, we want to give relief to senior citizens aged 75 years and above. They will no longer need to file IT returns.
  • Right now, cases of tax reassessment could be opened even after 6 years and in severe cases after 10 years.  Now it is being reduced to 3 years.
  • 85 thousand crore rupees tax disputes have recently ended. 
  • Faceless Redressal: A Dispute Resolution Committee will be formed for small taxpayers. People with income up to 50 lakh and disputed income up to 10 lakh will be able to go to this committee. This committee will be faceless.  The National Faceless Appellate Tribunal will also be formed.
  • If the turnover now exceeds 1 crore, a tax audit has to be done. This exemption was increased to 5 crore turnover for 95% of digital transactions.  It is now being increased to 10 crores.
  • The Finance Minister said that home is a priority for all. There was a provision for a reduction of 1.5 lakh rupees in interest on home loans. Now an additional discount of 1.5 lakh rupees in interest for affordable house will be available till 31 March 2022.

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