Time limit for reopening of income-tax assessment halved to 3 yrs, serious fraud cases retained at 10 yrs: Budget 2021

Budget 2021: Finance Minister Nirmala Sitharaman on Monday reduced the time limit for reopening of income tax assessment cases to three years from six years, while for serious tax fraud cases where concealment of income is Rs 50 lakh or more it would be 10 years.

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In her Budget speech for 2021-22, Sitharaman also announced that senior citizens above 75 years of age having only pension and interest income would not be required to file income tax returns. Banks paying the interest would deduct the tax on their behalf.

She said to end the uncertainty in the minds of taxpayers over reopening of assessment cases, the time limit for a reduction in limit for reopening to assessment to three years from six years earlier.

Sitharaman said the tax department will notify rules to remove hardships of double taxation faced by of non-resident indians (NRIs).

Also, pre-filled income tax returns with details on capital gains from listed securities, dividend income and interest income from banks and post offices would be available soon, she said.

For small taxpayers with taxable income up to Rs 50 lakh, a dispute resolution committee would be set up.

She said 1.10 lakh taxpayers have availed the Direct Tax Vivad Se Vishwas scheme to resolve tax disputes.

The Budget also proposed to start faceless Income Tax Appellate Tribunal (ITAT).

The story has been taken from a news agency