In the Union Budget 2021-22, the Finance Minister Nirmala Sitharaman seeks to further simplify the Tax Administration, Litigation Management and ease the compliance of Direct Tax Administration.
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To further reduce litigation of small tax payers, Smt. Sitharaman proposed to constitute a Dispute Resolution Committee. Anyone with a taxable income upto Rs. 50 lakh and disputed income upto Rs. 10 lakh, shall be eligible to approach the Committee.
She also announced setting up of National Faceless Income Tax Appellate Tribunal Centre, wherein all communication between the Tribunal and the appellant shall be electronic.
In the 75th year of independence, the Budget seeks to reduce compliance burden on senior citizens who are of 75 years of age and above. Such senior citizens having only pension and interest income, will be exempted from filing their income tax return.
The Budget proposes to notify rules for removing the hardship of Non-Resident Indians returning to India, on the issue of their accrued incomes in their foreign retirement account. It proposes to make dividend payment to REIT/InvIT exempt from TDS.
The Finance Minister proposed to extend the eligibility period for claim of additional deduction for interest of Rs. 1.5 lakh on loan taken for purchase of an affordable house to 31st March, 2022.
In order to incentivize start-ups in the country, Smt. Sitharaman announced extension in the eligibility for claiming tax holiday for start-ups by one more year till 31st March, 2022.
