Five changes related to Tax in Budget-2021Hemlata Khandelwal / 2021-02-26 10:19:08
Finance Minister had presented the country's budget. Employees had high expectations from this budget. It was expected that this time around 7 years, the limit of tax exemption would be increased from 2.5 lakhs, and also the tax exemption limit on 80C investment has been increased from 1.5 lakhs, but nothing like this happened. After this budget, there has also been talking that there was no big announcement related to tax. Even though the Modi government did not give anything to the jobbers this time, but there are 6 big tax-related announcements.
- Big relief to senior citizens
The budget provides a big relief to the senior citizens. The Finance Minister has announced in the budget that such people above the age of 75 years will not be required to pay ITR, which is dependent only on income from a pension or bank interest. If they are earning from other sources too, whether it is rent or anything else, they will be obliged to Income Tax Return Filing as usual.
- Now, not 6 years, tax cases can be reopened in 3 years
In this budget, it has also been proposed to reduce the period of reopening of the case of tax assessment from 6 years to 3 years. The big benefit from this will be that taxpayers will not have to remain in uncertainty for long. Even in serious cases where evidence of tax evasion of Rs 50 lakh or more is found in a year, they can also be reopened in 10 years.
- ITR filing up and easy
Till now, while filling the ITR, we had already received information like name, address, tax on salary, payment of tax, TDS in the form. It has been easier to make in this announcement. Now the information of capital gains from securities listed, information on dividend income, and interest received from the bank-post office will also be filled in advance.
- Provision of Faceless Income Tax Appeal Tribunal
In this budget, the system of a faceless income tax appeal tribunal is also being emphasized. Under this, a National Income Tax Appellate Tribunal Center is being built. All the communication in this system will be done online. If a taxpayer's presence is required in a case, he/she will be able to speak through video conferencing.
- Tax audit limit doubled
Nirmala Sitharaman has raised the limit of tax audit in this budget from a turnover of Rs 5 crore to a turnover of Rs 10 crore. He said that earlier this he had increased the turnover from Rs 1 crore to Rs 5 crore. This is for those who do about 95 percent of their transactions through digital means.