Finance Minister Nirmala Sitharaman has presented the country’s budget. There is no tax relief to the employed people from this budget. While the taxpayers were expecting that Sitharaman would give some gift. Even though the Modi government did not give anything to the jobbers this time, Finance Minister Nirmala Sitharaman has made some important tax related announcements today. While he gave relief to senior citizens, he did not make any announcement for common income tax payers. This budget is the first general budget of this decade. Budget 2021 is also the first digital budget. Let us know what the declarations related to tax made by Sitharaman.
The Finance Minister said that it has been proposed to constitute a Dispute Resolution Committee to reduce litigation for small taxpayers. This will ensure efficiency and transparency. Individuals with taxable income up to Rs 50 lakh and disputed income up to Rs 10 lakh will be eligible to go before this committee.
The general income tax payers have not received any relief in Budget 2021. Only those above 75 years of age will not have to file income tax returns.
Nirmala Sitharaman has also announced facilities for NRI people. He said that NRI people had to face a lot of difficulty in filing taxes. But this time the government has exempted them from the double tax system.
Sitharaman said that it is time to keep the tax system transparent. The Goods and Services Tax (GST) is now four years old. The capacity of GSTN system has also been increased. Fake billers are being identified. The result is encouraging. There has been a record GST collection in the last few months.
Till now, tax re-assessment could be opened after six years and in severe cases even after 10 years. But now it has been reduced to three years. If in serious cases, there will be a matter of hiding income of more than 50 lakhs in a year, only then cases can be opened for 10 years. However, he would have to get approval from the commissioner. It is proposed to increase the limit of tax audit from 5 crore to 10 crore. In this way the government attempted to eliminate the complexity of the taxation system. The Finance Minister said that the government has reduced corporate tax to attract investment and the dividend tax has been removed.
Tax at the rate of 10 per cent on income from 5 lakh to 7.5 lakh.
Tax at the rate of 15 per cent on income between 7.5 lakh to 10 lakh.
Taxes at the rate of 20 percent on income from 10 lakh to 12.5 lakh.
Taxes at the rate of 25 percent on income from 12.5 lakh to 15 lakh.
Taxes at the rate of 30 per cent on income above 15 lakh.