This Article is From Feb 01, 2021

Budget 2021: Senior Citizens 75 Years And Above To Get Major Tax Exemption

Budget 2021: Time limit to reopen an assessment case would to be reduced to three years from the current six years

Budget 2021: Senior Citizens 75 Years And Above To Get Major Tax Exemption

The FM said the tax system should put a minimum burden on the taxpayers.

Senior citizens can now hope to heave a sigh of relief as far as their income tax (I-T) returns are involved.  Finance Minister Nirmala Sitharaman in the Union Budget 2021-22 announced that senior citizens (above 75 years) with only pension or interest as income will be exempted from filing I-T returns.

Ms Sitharaman said that the tax system should put a minimum burden on the taxpayers. An anonymous dispute redressal platform will also be set up for small taxpayers, she added.

A reduction of time in I-T cases was also proposed, while the time limit to reopen an assessment case would to be reduced to three years from the current six years. 

“Tax audit limit increased from Rs 5 crore to Rs 10 crore,” Ms Sitharaman said.

The common man who expecting some income tax relief after being affected by the Covid-19 pandemic may not yet get some relief and senior citizens would not immediately get any relief.  

Taxpayers were also expecting tax incentives to increase spending and boost household consumption demand. The Union Budget also looks at higher deductions on housing loans and levy of a Covid-19 cess that is expected to be imposed on high-income individuals. The Budget also looks at job creation prospects, putting more money in the hands of the taxpayer and easing of rules to attract foreign investments.