New Delhi: There is no change in the income tax slabs and exemption limits but the Finance Minister has resorted to some tweaking to bring some cheer.
Result: Taxpayers can now file an updated return within two years of the relevant assessment year. The minister said this would give an opportunity to the taxpayers to correct any omissions or mistakes. As of now, if the IT department finds out that some income has been missed out by the assessee, it goes through a lengthy process of adjudication.
The new proposal would repose trust in the taxpayer, Nirmala Sitharaman explained. It is an affirmative step in the direction of voluntary tax compliance.
TAX ON COOPERATIVES: In another relief, the income tax on cooperative societies has been reduced from 18.5% to 15%; this will provide them with a level playing field viz-a-viz corporates. The surcharge on cooperatives with an annual income of Rs 1 crore to Rs 10 crore, too, has been brought down to 7%, instead of 12%.
DIFFERENTLY ABLED: Another change she has proposed is to allow the payment of annuity and lump sum amount to differently abled dependent during the lifetime of parents/guardians, on subscribers attaining the age of sixty years.
Sitharaman has also enhanced the social security benefits to the state government employees by bringing them at par with the central staff by increasing the tax deduction limit from 10 to 14% on the employer's (state govt's) contribution to the NPS (pension) account.
Not happy with the sops to the salaried class, Congress spokesperson Randeep Singh Surjewala described the Budget as "a betrayal of India’s Middle Class which was hoping for relief in times of pandemic."
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