In a big relief to senior citizens, people above 75 years with only pension and interest income will be exempt from filing Income Tax Returns in order to ease their compliance burden, Finance Minister Nirmala Sitharaman announced on Monday.
“We shall reduce the 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 return,” Sitharaman said in her budget speech.
The minister announced that the income tax return filers have increased to 6.48 crore in 2020 from 3.31 crore in 2014. However, she didn’t announce any change in the income tax slab.
The budget, however, brought some good news for the young entrepreneurs as the tax holiday for startups has been extended by a year. Besides this, the exemption on capital gains on investment in startups was also extended by one year.
The government will also a dispute resolution committee for small taxpayers with taxable income up to Rs 50 lakh and disputable income of Rs 10 lakh. Sitharaman said 1.10 lakh taxpayers have availed the Direct Tax Vivad Se Vishwas scheme to resolve tax disputes.
Highlighting the record collection of GST in the last few months, the minister said the government will take every possible measure to reduce anomalies.