No major changes for taxpayers to notice! 400 exemptions to be reviewed

New Delhi, February 01: Finance Minister Nirmala Sitharaman has announced several proposals for the benefit of depositors, investors and taxpayers. Sitharaman said that the tax system should put a minimum burden on the taxpayers. The Finance minister surprised taxpayers by not announcing any change in income tax slab rates. Some relief in filing ITR for senior citizens above 75 and NRIs were, however, announced.

 

The Budget also proposed to provide GST relief by reducing inverted GST structures. For this, the Government will take necessary steps.

 

 

Budget for startups: Finance Minister Nirmala Sitharaman today proposed extension of the eligibility for claiming tax holiday and capital gains exemption for investment in startups till March 31, 2022. "In order to incentivise startups in the country, I propose to extend the eligibility for claiming tax holiday for startups by one more year to March 31, 2022," Finance Minister Nirmala Sitharaman said.

 

GST: Inverted duty structures to be reduced. Govt to take steps to reduce inverted duty structures in GST, FM Nirmala Sitharaman said. The Government proposed to review over 400 old exemptions in indirect taxes and it will begin extensive consultation from October 2021, said the FM.

 

ITR filing made easy: Interest income, Capital gains from securities to be pre-filled. Sitharaman said that in ITR, details of capital gains, income from list securities, dividend income, income from interest on bank deposits tom come pre-filled in ITR, said Nirmala Sitharaman in Budget Speech 2021.

 

 

Budget Highlight: Reduction of time in income tax proceedings proposed. Sitharaman said that the tax system should put minimum burden on the taxpayers. A faceless dispute redressal platform to be set up for small taxpayers. Hence, reduction of time in income tax proceedings proposed. Time limit to reopen the assessment case proposed to be reduced to 3 years from the current 6 years limit.

 

Sitharaman had earlier promised to present a “budget like no other”. It was hoped that this year it will be a Budget like no other for taxpayers as well. The finance minister was expected to provide relief to the pandemic-hit common man as well as focus more on driving economic recovery. Experts believed that Budget 2021 could be the starting point for picking up the pieces after the economic destruction caused by COVID-19 pandemic.

 

The salaried individuals were hoping that the government would broaden some tax advantages through Budget. In the run-up to the Budget presentation, several experts and professional bodies like ICAI had recommended the government to increase the deduction limit under Section 80C of the Income Tax Act. Some even suggested the government to allow higher deduction under Section 80D and increase the deposit limit in PPF to Rs 3 lakh.