Finance Minister Nirmala Sitharaman announced the Union Budget 2021-22 today and there were no major changes made to the personal income tax but certain changes were announced as part of income tax compliance. No chess was announced for higher-income taxpayers in the COVID-19 era too.
Senior citizens were offered benefits, Finance Minister announced that senior citizens above 75 years of age and who have income from pension and interest are not required to file an income tax return. The relief is subject to the following conditions being met:
- The senior citizen is a resident of India and of the age 75 or more during the previous year
- He or she has only pension income and no other income. In addition to the pension income, he may have interest income from the same bank in which he is receiving his pension income
- This Bank is a specified bank
- He or she will be required to furnish a declaration to a specified bank
Finance Minister also announced that Central Government planned to reduce the timeline for reopening of tax cases to 3 years from 6 years.
Nirmala Sitharaman has proposed that all income tax procedures shall be carried out electronically, hence making the Income Tax Appellate Tribunal faceless.
Exemption from tax audit limit doubled to Rs 10 crore turnover for companies doing most of their business through digital modes and there is further ease of income tax filing. Capital gains from listing securities and interest income to be pre-filled in ITR.
Finance Minister also proposed to restrict tax exemption for the interest income earned on the employees’ contribution to Provident Fund to the annual contribution of Rs 2.5 lakh but it is applicable for the contributions made on or after 1 April.