New Delhi: The Finance Minister in her Budget 2021 speech did not announce any change in income tax rate. There is no change in income tax slabs this year. However, some measures have been announced to make tax return filing even simpler for small taxpayers.
For senior citizens, 75 years or above, with only pension and interest income, FM Sitharaman proposed exemption from filing their ITRs. The government has also proposed to constitute a dispute resolution committee to improve transparency, accountability for small taxpayers.
Tax audit limit for NRI has been increased from 5 crore to 10 crore. In order to further reduce litigation for small taxpayers, FM has proposed to constitute a dispute resolution committee which will be faceless to ensure efficiency, transparency. Anyone with a taxable income up to Rs 50 Lakhs and disputed income up to Rs 10 Lakhs will be eligible to approach the committee.
Note that In last year’s Budget, Finance Minister Nirmala Sitharaman announced new income tax rates and slabs for those earning up to Rs 15 lakh a year. The new tax rates were optional and are applicable for those foregoing exemptions and deductions.