Budget 2021: No ITR filing for senior citizens aged 75 and over earning only pension and interest
Ahead of the 75th year of Independence for our country that will be celebrated next year, Finance Minister Nirmala Sitharaman announced a tax filing waiver for senior citizens during the tabling of Union Budget 2021 in the Lok Sabha. This means that senior citizens who are aged 75 and above do not have to file Income Tax Returns anymore, and the tax will be directly deducted from their accounts.
“I begin my direct tax proposals by offering my pranaam to our senior citizens. Many of them, despite having foregone several basic necessities of their own, have strived to build our nation,” the Finance Minister said.
“Now in the 75th year of Independence of our country, when we continue our endeavour with renewed vigour, we shall reduce compliance burden on our senior citizens who are 75 years of age and above. For senior citizens who only have pension and interest income, I propose exemption from filing their income tax returns. The paying bank will deduct the necessary tax on their income.”
Finance Minister Nirmala Sitharaman presents Union Budget 2021-2022
Apart from this, the Finance Minister also announced a reduction in the time limit for income tax proceedings for the working sectors, from six years to 10 years, considering that an “an assessment can be re-opened up to six years and in serious tax fraud cases for up to 10 years. As a result, taxpayers have to remain under uncertainty for a long time.”
The government also announced the ‘Direct Tax Vivad Se Vishwas Scheme’ to provide taxpayers with an opportunity, to settle long-pending disputes with their taxes, and be relieved of further strain on their time and resources.
“The response from the taxpayers has been the best ever as over 1,10,000 taxpayers have already opted to settle tax disputes of over Rs 85,000 crore under this scheme,” FM Sitharaman said.
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