Union Finance Minister Nirmala Sitharaman on Monday, February 1, has announced several proposals for the benefit of depositors, investors and taxpayers in the Budget 2021. Though, there were not major alteration made in personal taxation, which goes against the expectations of salaried class. However, some relief in filing ITR for senior citizens above 75 and NRIs were announced. The finance minister also proposed to provide GST relief by reducing inverted GST structures.
Sitharaman said that the tax system should put a minimum burden on the taxpayers. For this, the Government will take the necessary steps.
Presenting the Budget, FM proposed that the central government would reduce timeline for reopening of tax cases to three years from six years. The central government plans to make income tax appellate tribunals faceless and set up national income tax appellate tribunal centre. Exemption from tax audit limit doubled to INR 10 crores turnover for companies doing most of their business through digital modes, said finance minister.
To further ease of income tax filing, capital gains from listing securities and interest income to come pre-filled in ITRs, announced Sitharaman.
In a relief to senior citizens, the finance minister Nirmala Sitharaman announced that no income tax filing required for senior citizens above 75 years of age and who have income only from pension and interest income in the Union Budget 2021.
Giving a fillip to household savings, the government was expected to increase tax exemption limit under Section 80C to INR 2 lakh from INR 1.5 lakh.
Additionally, the PPF contribution limit was also expected to be doubled to INR 3 lakh from INR 1.5 lakh. PPF investment limit was last increased by the late former finance minister Arun Jaitley in Budget 2015, when he increased it from INR 1 lakh to INR 1.5 lakh.
Meanwhile, the finance minister stated that serious tax offences of concealment of income of over INR 50 lakh can be reopened after 10 years, finance minister added.
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