New Delhi: Finance Minister Nirmala Sitharaman on Monday neither gave relief nor effected any change in the income tax rates, except for giving a lollipop of exemption to those above 75. Senior citizens in this category need not file income tax returns, provided they are dependent only on pension and interest and have no other source of income.
FACELESS DISPUTE: She also offered a faceless dispute resolution committee to those with taxable income up to Rs 50 lakh and disputed income up to Rs 10 lakh. Also, the reopening of the assessment has been reduced from six years to three years, which means the returns will not be checked after three years. This will reduce litigation and uncertainty for the taxpayers. Also, only serious tax offences of concealment of income of over Rs 50 lakh can be reopened after 10 years. Sitharaman also promised relaxation to the NRIs and rules to stop their harassment with double taxation. The tax holiday for the start-ups has been further extended by one year till March 31, 2022.
The finance minister has also doled out an additional incentive for incorporation of one-person company to enable them to grow without restrictions of capital and turnover.
The minimum wages have been extended to all categories of workers, in tune with "one nation, one ration card" already under implementation in 32 of the 35 states and Union territories. The migrant workers will be particular beneficiaries as a portal is being launched to capture their data.Some other measures are:-- Rs 1.5 lakh deduction on payment of interest for affordable housing for another one year.-- Tax exemption for notified affordable housing for migrant workers.-- Tax exemption for aircraft leasing companies.-- Late deposit of employee's contribution to PF by employer will debar the latter from deduction.