Tax Budget 2021: Tax audit limit increased from Rs 5 crore to Rs 10 crore
New Delhi | Jagran Business Desk:
Finance Minister Nirmala Sitharaman announced the Union Budget 2021 recently. And a lot of sectors like railways, education and health saw big chances. But on the contrary to the expectations of people, she did not mention anything regarding the change in the tax slabs. There were no announcements for income tax rate in her budget speech this year. However, tax audit limit for NRIs has been uped from Rs 5 cr to Rs 10 cr. Tax department will notify rules to remove hardships of double taxation faced by NRIs.
In her statement, she said, “Will reduce the time limit for reopening assessments to 3 years from present 6 years.” Meanwhile, for middleclass taxpayers, Sitharaman, introduced a committee for dispute resolution to ensure accuracy and efficiency. A tax payer who makes lumpsum amount of about Rs 50 Lakhs and has disputed income up to Rs 10 Lakhs can knock the committee doors. The time bar for reopening the IT assessment cases have been halved to 3 years. But incase of the serious frauds or scams the time decided is 10 years.
Meanwhile, Sitharaman also mentioned that filing Income Tax Returns (ITR) for senior citizens above 75 is not mandatory, banks to deduct TDS. She even announced that there has been an increase in the Income tax return filers to 6.48 cr in 2020 from 3.31 cr in 2014.
On the other hand, tax holiday for startups and capital gains exemption has been extended by 1 year.
With inputs from PTI.
Posted By: Sanyukta Baijal