The Central Government has also reduced the period of opening of old cases from 6 to 3 years after the online process of Income Tax Assessment (Faceless Income Tax Assessment). Finance Minister Nirmala Sitharaman (Nirmala Sitharaman) on Monday Budget Announced it in Although the hidden income in serious cases related to tax fraud is 50 lakh rupees or more, then the period of opening such cases will be 10 years.
It has also been proposed to start a ‘Faceless Income Tax Appellate Tribunal’ in the budget. That is, no person will have to appear before the officer in case of tax dispute. The Income Tax Officer will also not know the person whose case he is investigating. Sitharaman said that the time limit has been reduced to remove the uncertainty in the minds of taxpayers regarding the reopening of income tax assessment cases.
According to the budget proposal, a Dispute Resolution Committee will be set up for small taxpayers with taxable income up to Rs 50 lakh. 1.10 lakh taxpayers have availed the trust scheme from direct tax dispute to resolve tax disputes.
In its budget speech for the FY 2021-22, it said that only senior citizens above 75 years of age with pension and interest income would not be required to file income tax returns. Banks paying interest will deduct tax on their behalf.
The tax department will implement rules to remove double taxation difficulties of Non-Resident Indians (NRIs). The pre-filled income tax returns with details of capital gains, dividend income and interest income from banks and post offices will be available soon.
Tax partner of Deloitte India Divya Baweja said that with this announcement the process of tax assessment will be transparent and more effective. The process of faceless assessment, appeal and penalty has already been implemented. Faceless Income Tax Appellate Tribunal (ITAT) has also been formed to resolve the disputes on this. This will eliminate the possibility of harassment or any kind of trouble.