In this budget, the middle class sitting on hopes of getting income tax exemption has received a shock and the salaried class is disappointed with this budget. In the budget for the financial year 2021-22, neither an additional tax exemption was announced in the income tax nor was there any change in the tax slab. Taxpayers have to follow the same tax rules as before. Only those over the age of 75 are relieved to file returns. Older people above the age of 75 years will no longer have to file income tax returns, which are dependent on pension only. However, NRI taxpayers are given some relief in double taxation.
This big step towards tax reform
Finance Minister Nirmala Sitharaman said that the tax assessment period has been reduced from six years to three years. This means that cases older than three years will no longer be opened. This is a major step towards tax reform. That is, in tax evasion cases of income below 50 lakh, the time limit for opening old returns has been reduced from 6 years to 3 years. 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.
No advance tax to be paid on dividend
People will get two options to file income tax returns this year, just like last year. Also, you will not have to pay advance tax on the dividend income. Apart from this, additional exemption has been continued on interest of up to Rs 1.5 lakh for buying a house up to Rs 45 lakh and will be exempted from this tax till 31 March 2022.
Appellate tribunal will be faceless
After the faceless assessment and the appeal of the Central Government for the settlement of tax related disputes, now the Appellate Tribunal is also preparing to be made faceless. The government has announced the creation of a Faceless Income Tax Appellate Tribunal Center. Under this, all communication will now be done electronically. At the same time, if in-person hearing is required, it will be done through video conferencing.
