Contrary to expectations of middle class, Finance Minister Nirmala Sitharaman did not tweak personal income tax in Budget 2021. However, the Union Budget did bring about certain changes as part of income tax compliance.
1. In a relief to senior citizens, the finance minister Nirmala Sitharaman announced that no income tax filing required for seniors citizens above 75 years of age and who have income only from pension and interest income in the Union Budget 2021.
"We shall reduce the compliance burden on our senior citizens who are 75 years of age & above - for senior citizens who only have pension & interest income, I propose exemption from filing their Income Tax return," said finance minister Nirmala Sitharaman.
2. Presenting the Budget, FM announced that the central government planned to reduce timeline for reopening of tax cases to 3 years from 6 years.
3. To further ease of income income tax filing, capital gains from listing securities and interest income to come pre-filled in ITRs, FM announced.
4. The central government also proposed to make income tax appellate tribunals faceless and set up national income tax appellate tribunal centre.
5. Exemption from tax audit limit doubled to Rs 10 crore turnover for companies doing most of their business through digital modes, announced finance minister.
6. Serious tax offences of concealment of income of over Rs 50 lakh can be reopened after 10 years, finance minister added.