#Budget2021: Senior citizens with only pension/interest income exempted from ITR
What's the story
In her third Union Budget, Finance Minister Nirmala Sitharaman announced that senior citizens above 75, who rely only on pension and interests for income, will be exempted from filing Income Tax Returns. This means that banks paying them income will deduct the necessary taxes from their accounts. "In the 75th year of Independence of our country, we shall reduce the compliance burden on senior citizens," she said.
Eligibility
Deadline for investing in a central scheme extended
Further, the government has also extended the deadline for the elderly to invest in the Pradhan Mantri Vaya Vandana Yojana (PMVVY) until March 31, 2023. The Budget of 2018 had underlined that the maximum amount that could be invested in this scheme was Rs. 7.5 lakh. However, in her latest offering, Sitharaman has doubled this amount to Rs. 15 lakh.
Statement
Timeline to reopen tax evasion cases cut to half
Falling in line with one of the pillars of her Budget — minimum government and maximum governance — Sitharaman said the tax system should not burden the taxpayers. She announced the setting up of a faceless dispute redressal platform for small taxpayers. To curb tax harassment, the government reduced the timeline to reopen tax evasion cases from the existing six years to three years.
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Serious cases can be reopened after 10 years
Moreover, Sitharaman revealed that serious tax evasion cases can be reopened after 10 years, only if there is evidence that income of Rs. 50 lakh or more was concealed in a year.
NRIs
NRIs saved from double taxation
For non-resident Indians (NRIs), Sitharaman came with a present. They will no longer be levied a double tax on foreign retirement funds. New rules for the same will be notified. However, dashing hopes of the common citizen, Sitharaman didn't announce changes in the existing income tax slabs. She, meanwhile, underlined that ITR filers increased from 3.31 crore in 2014 to 6.48 crore in 2020.
Details
Tax holiday for start-ups extended till March 31, 2022
Sitharaman also extended the tax holiday for start-ups and affordable housing projects till March 31, 2022. Furthermore, the relief provided to charitable trusts running hospitals and educational institutions was increased to Rs. 5 crore from the existing Rs. 1 crore. In another move to help individuals, Sitharaman said employers can no longer delay depositing their share in the Provident Fund (PF) account of employees.