Business

Senior citizens above 75 yrs with only pension income exempted from filing tax returns: Sitharaman

ANI | February 01, 2021 01:26 PM
Finance Minister Nirmala Sitharaman during her Budget speech on Monday.

New Delhi [India], February 1 (ANI): Senior citizens above 75 years of age with only pension and interest incomes have been exempted from filing tax returns, Finance Minister Nirmala Sitharaman announced on Monday.

While tabling the Union budget 2021-22 in Parliament, the minister said that the number of income tax return filers has increased to 6.48 crores now from 3.48 crores in 2014.

"We shall reduce the compliance burden on our senior citizens who are 75 years of age and above. For senior citizens who have pensions and interest income, I propose exemption from filing their income tax returns. The paying bank will deduct the necessary tax from their income," she said.

Sitharaman said serious tax offences of concealment of income of over Rs 50 lakh can be reopened even after 10 years.

"Presently an assessment can be reopened up to six years and in serious tax fraud cases up to 10 years, as a result, taxpayers have to remain under uncertainty for a long time. I, therefore, propose to reduce this time limit for reopening of assessments to three years from the present six years. In serious tax evasion cases too, only where there is evidence of concealment of income of Rs 50 lakh or more in a year can the assessment be reopened up to 10 years. Even this reopening can be done only after the approval of the principal chief commissioner, the highest level of the income tax department," she said.

The Finance Minister also announced to constitute a dispute resolution for small taxpayers that will be faceless to ensure efficiency, transparency and accountability. Anyone with a taxable income up to Rs 50 lakhs and disputed income up to Rs 10 lakhs shall be eligible to approach the committee, she said.

She also proposed to make income tax appellate tribunals faceless and to set up national income tax appellate tribunal centre.

"I propose to make Income Tax Appellate Tribunal faceless. We shall establish a national faceless income tax appellate Tribunal centre. All communication between Tribunal and the appellant shall be electronic, where personal hearing is needed, it shall be done through video conferencing," the minister said.

Sitharaman said that exemption from tax audit limit doubled to Rs 10 crores turnover for companies doing most of their business through digital modes.

"Currently, if your turnover exceeds Rs 1 crores, you have to get your accounts audited. In February 2020 budget, I had increased the limit for taxation audits to Rs 5 crores for those who carry out 95 per cent of their transactions digitally. To further incentivise digital transactions and to reduce compliance burden, I propose to increase this limit for tax audit for such persons from five crores to Rs 10 crores," she said. (ANI)

Have something to say? Post your comment
Must Read
Hoshiarpur Police to get tough against violations of COVID Norms
Hoshiarpur Police to get tough against violations of COVID Norms
On PM-Kisan's 2nd anniversary, PM Modi says govt doing everything possible to double farmers' income
On PM-Kisan's 2nd anniversary, PM Modi says govt doing everything possible to double farmers' income
Punjab CM virtually launches Rs 1087 crores development projects under Smart City and AMRUT schemes
Punjab CM virtually launches Rs 1087 crores development projects under Smart City and AMRUT schemes
Punjab Cabinet paves way for deemed approval of regulatory clearances & auto renewal for industrial projects
Punjab Cabinet paves way for deemed approval of regulatory clearances & auto renewal for industrial projects
Punjab Cabinet approves implementation of Mission Lal Lakir in all villages
Punjab Cabinet approves implementation of Mission Lal Lakir in all villages
Punjab Cabinet okays amendment to Indian Partnership Act, 1932 to revise nearly 90-year-old fee structure
Punjab Cabinet okays amendment to Indian Partnership Act, 1932 to revise nearly 90-year-old fee structure
Punjab Cabinet approves restructuring of 5 more departments to create 1875 new posts & boost efficiencies
Punjab Cabinet approves restructuring of 5 more departments to create 1875 new posts & boost efficiencies
Indian  Youth Congress president of Faridkot district allegedly shot dead in the evening.6 bullets fired at him at point-blank range near his car
Indian Youth Congress president of Faridkot district allegedly shot dead in the evening.6 bullets fired at him at point-blank range near his car
Jang-e-Azaadi memorial reopened for public after 11 months
Jang-e-Azaadi memorial reopened for public after 11 months
Three lakh school students participate in competitions dedicated to 400th Parkash Purb of Guru Tegh Bahadur ji: Vijay Inder Singla
Three lakh school students participate in competitions dedicated to 400th Parkash Purb of Guru Tegh Bahadur ji: Vijay Inder Singla
Punjab gears up for General Elections of Municipal Bodies
Punjab gears up for General Elections of Municipal Bodies
Earthquake measuring 6.1 jolts Jalandhar, strong tremors felt in J&K, Delhi-NCR
Earthquake measuring 6.1 jolts Jalandhar, strong tremors felt in J&K, Delhi-NCR