No change in IT relief, only lollipop to those over 75

KT NEWS SERVICE. Dated: 2/2/2021 12:45:19 AM

NEW DELHI, Feb 1: Finance Minister Nirmala Sitharaman on Monday effected no relief or any change in the income tax rates, except for giving a lollipop of exemption to those above 75 to file the income tax returns, provided they are dependent only on pension and interest and no other income, instead of any relief to all senior citizens above 60.
She also offered a faceless dispute resolution committee to those with the taxable income up to Rs 50 lakh and disputed income up to Rs 10 lakh. Also the reopening of the assessment has been reduced from six years to three years, which means the returns will not be checked after three years. This will reduce litigation and uncertainty for the taxpayers.
Also, only the serious tax offences of concealment of income of over Rs 50 lakh can be reopened after 10 years. Sitharaman also promised relaxation to the NRIs, promising to issue the rules to stop their harassment with double taxation.
To further ease filing of the income tax returns, capital gains from the listed securities and income will come pre-filled in the returns. The income tax return filers increased from 3.31 crore in 2014 to 6.48 crore.
In 2020-21, a significant cut in the tax rates for the salaried class was announced, which, Sitharaman said, was to simplify the tax regime which was riddled with multiple exemptions and needed taxpayers to take the help of the professionals. Last year’s announcement ushered in a new tax regime where the taxpayer got the option of taking new rates without exemptions or sticking to old rates with exemptions.
The tax holiday for the start-ups has been further extended by one year till March 31, 2022. The finance minister also doled out an incentive for incorporation of one-person company to enable let them grow without the restrictions of capital and turnover.
The minimum wages have been extended to all categories of workers, in tune with "one nation, one ration card" already under implementation in 32 of 35 states and Union territories. Particularly beneficial will be the migrant workers as the finance minister announced to launch a portal to capture their data.
The tax rates of last year that remain unchanged are tax exemption to income up to Rs 2.5 lakh per annum, a tax of 5% on income between Rs 2.5 to 5 lakh and 10% on annual income between Rs 5-7.5 lakh, which were earlier 20%. It remains unchanged at 15% income tax on those earning Rs 7.5 lakh to Rs 10 lakh per annum and only 20% instead of previous 30% on those earning Rs 10 lakh to Rs 12.5 lakh.
The new tax rate applicable to those earning in the range of Rs 12.5 lakh to Rs 15 lakh per annum in the last year's budget was set at 25% and at 30% for income above Rs 15 lakh that remain unchanged. Some other measures announced in the Union Bidget are:
-- Rs 1.5 lakh deduction on payment of interest for affordable housing for another one year.
-- Tax exemption for notified affordable housing for migrant workers.
-- Tax exemption for aircraft leasing companies.
-- Govt to take every possible measure to reduce GST anomalies in view of the record collection in the last few months.
-- More than 400 old customs duty exemptions to be dropped this year, with a revised structure to be declared on October 1, after consultations. and
-- Late deposit of employee's contribution to PF by employer will debar the latter from deduction.

 

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