Union Finance Minister Nirmala Sitharaman, while presenting the Budget, announced that senior citizens aged above 75 with only pension income will be exempted from filing Income Tax returns.
“Despite having foregone several basic necessities of their own, they have strived to build our nation. Now in the 75th year of independence of our country…, we shall reduce the compliance burden to senior citizens,” she said.
The paying bank will deduct the necessary tax on their income.
Ms. Sitharaman quoted a Tamil couplet written by Thiruvalluvar to highlight the government’s initiatives during the tough times.
The couplet translates roughly to: A good king or ruler is one who creates or acquires wealth, protects it, and distributes it for the common good.
Reopening of assessment
Presently, an assessment can be reopened up to six years, and in cases of serious tax fraud, the period is 10 years. This time limit has been reduced to three years.
In serious tax evasion cases too, only if there is evidence of concealment of income ₹50 lakh or more in a year, can it be opened for up to 10 years. Even this reopening can be done only after the approval of the Principal Chief Commissioner.