In a put up-pandemic 12 months, the federal government confirmed a severe intent to determine a tax regime with far-reaching impression
In the primary put up-pandemic funds, Union Finance Minister Nirmala Sitharaman made a number of bulletins. Here are eight of an important tax-related bulletins:
Tax returns for senior residents
Senior residents should not have to file tax returns if they’ve an solely pension and curiosity earnings supplied they’re above 75 years. This will allow quite a few senior residents to save lots of the trouble of normal tax return filings. While it might not cowl all of the related folks, it’s prone to cowl a big majority of senior residents on a pan- India foundation.
Reassessment interval diminished from six to a few years
This is a giant optimistic transfer by the federal government and can assist to scale back the variety of circumstances within the coming days and in addition exhibits that the federal government is keen to belief its residents.
Faceless appellate scheme
This is a step within the direct path. However, it should be seen as to how the scheme goes to be carried out as a result of not like the primary appellate system, which was nonetheless throughout the government management of the federal government, the ITAT is an unbiased physique and therefore, how the precise framework shall be rolled out and the way the appellate system shall be given impact to, shall be attention-grabbing to see.
Settling tax disputes
The Vivaad se Viswas scheme has seen good traction with greater than 110,000 circumstances getting settled involving excellent taxes amounting to Rs 85,000 crore.
Relief for tax on dividends
Dividends obtained by REITs and InViTs have been declared as completely exempt, thereby enabling better acceptability of such schemes.
The announcement that particular person taxpayers shall not be liable to pay advance tax on their dividend earnings until such time they really obtain such dividends is one other optimistic transfer.
No audits for small charitable organisations
Small charitable organisations having lower than Rs 5 crores in income have been granted exemption from audits. This will assist loads of smaller establishments to focus extra on their core competencies and to fret about common compliances.
Relaxations for reasonably priced housing
Affordable housing has been granted additional relaxations by extending the final date until 31 March, 2022.
Greater flexibility to pension funds
Foreign Sovereign Wealth and Pension Funds have been granted better flexibility to be throughout the tips framed by the federal government to encourage additional investments by them and this can assist them better flexibility. Tax benefits have been granted to international plane leasing firms working from the International Financial Services Centre Authority.
The author is Partner and Head – Taxation, Cyril Amarchand Mangaldas.
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