Union Budget 2021: Govt focusses on easing pain points for taxpayers in coming fiscal year – India News , Firstpost

In order to make taxation processes faceless, the National Faceless Income Tax Appellate Tribunal Centre shall be established with the ability of private listening to by videoconferencing.

Govt have to ease tax burden. Scott Graham/Unsplash

To make governance easy for taxpayers and for the Income Tax Department, the federal government had launched a collection of direct tax reforms offering profit to taxpayers with an intention to spice up the financial system by growing tax assortment. In course of those reforms, company tax charges have been slashed considerably and the Dividend Distribution Tax too was abolished. Further, to remove the burden of taxation on small taxpayers’, the federal government had elevated the rebates to decrease the tax liabilities. Due to those efforts and reforms in 2020, we’ve got witnessed a pointy enhance in the return filers from 3.31 crores in 2014 to six.48 crore.

This Union Budget is concentrated extra on infra, agriculture, energy and training sector. However, there are few areas in the direct and oblique taxation the place outstanding modifications have been proposed.

Presently, non-resident Indians (NRIs) are dealing with problem in respect of the taxability of accrued revenue mendacity in their overseas account on the time of returning to India or in repatriation to India. This occurs as a result of unequal taxation legal guidelines and charges between the incomes nation and India. In some circumstances, it results in double taxation in the fingers of NRIs. Further, getting credit score in the overseas jurisdiction for further taxes deducted on the switch or repatriation is a pain level.

To make the method easy and clean, in Budget 2021 the finance minister has introduced some new guidelines proposed to be notified. By notifying these guidelines, tax legal guidelines will turn out to be simplified for NRIs and they’re going to additionally get credit score simply for the tax deducted in India. This will keep away from the state of affairs which ends up in double taxation.

There is one other large push by the federal government to encourage the Digital India Movement, which is its essential focus for fairly a while. The authorities has elevated the edge restrict for tax audit from Rs 5 crores to Rs 10 crores for entities who adjust to the norms of 95 p.c of the transactions in digital mode.

To encourage small taxpayers and to extend their numbers, the federal government has been pushing for eases in tax compliance and tax autonomy. For this, the federal government has proposed the organising of a brand new committee referred to as ‘Dispute Resolution Committee’ in order to additional scale back litigation for small taxpayers, which can be faceless to make sure effectivity, transparency and accountability for these people having a taxable revenue of as much as Rs 50 lakh and disputed revenue of as much as Rs 10 lakh.

In order to make taxation processes faceless, the National Faceless Income Tax Appellate Tribunal Centre shall be established with the ability of private listening to by videoconferencing.

The focus of the federal government is rising and it’s dedicated to offering all types of floor assist in this course of. Remarkably, in this Budget, the federal government has proposed provisions for offering reduction to the taxpayer relating to the reopening of earlier year evaluation. The time-restrict for reopening of the evaluation has been lowered to 3 years from six years. Even for severe tax evasion circumstances too–only if there isn’t any proof of concealment of revenue of Rs 50 lakh or extra in a year with prior approval of the Principal Chief Commissioner or highest degree otherwise–there can be no change in the evaluation re-opening interval of 10 years.

To facilitate the small taxpayers, main modifications have been introduced in Budget 2021:

  • Pre-filing of extra information whereas submitting Income Tax Return


Before describing the change, allow us to perceive the which means of Pre-filled information. Pre-filled information means among the required data is auto-populated from exterior sources in your Income Tax Return.

Currently, the data which is pre-stuffed in the ITR type is private data, financial institution particulars, particulars of allowable donation u/s 80G, particulars of wage revenue as per your Form 16, particulars of TDS, TCS and taxes paid as advance tax and self-evaluation tax from Form 26AS. In Budget 2021, some extra data is notified which can be pre-stuffed in the Income Tax Return i.e. Details of capital achieve arising from the sale of listed securities, particulars of dividend revenue and particulars of curiosity revenue obtained from Bank or Post Office.

  1. Exemption from submitting ITR

Only a person who’s of 75 years of age or extra having a pension and curiosity revenue is exempt from submitting ITR. Moreover, in the case of an Individual of 75 years or extra, the legal responsibility of crucial tax deduction is now transferred to the paying financial institution.

The author is Founder and Chairman, HostBooks Ltd

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