Personal tax: Mostly procedural relief proposed for FY22
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
A revenue constrained Union Budget 2021-22 did not offer much to personal taxpayers, with mostly procedural relief rather than an exemption cushion proposed.
The proposals presented to the Parliament by Finance Minister Nirmala Sitharaman exempted senior citizens of 75 years and above, who are dependent on pension and interest income from filing income tax returns. However, the paying bank will deduct the necessary tax on their income.
Besides, the dividend payments to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) from tax deduction at source (TDS) have been exempted.
An additional deduction of Rs 1.5 lakh has also been proposed on availing loans for affordable housing taken up till March 31, 2022.
Furthermore, the Finance Minister proposed to relax certain conditions which prohibited private funding, restriction on commercial activities, and direct investment in infrastructure to attract foreign sovereign wealth and pension funds to invest in domestic infra projects.
In addition, Sitharaman proposed to give relief to those Non-Resident Indians who have returned to India but face hardship of double taxation.
Apart from exemptions, the budget envisages constitution of a Dispute Resolution Committee for small taxpayers.
The time limit for reopening of income tax assessment is also set to reduce, while pre-filling of returns will cover capital gains from listed securities and dividend income.
