New Delhi: Finance Minister Nirmala Sitharaman has not announced any changes to the Income Tax Slab, despite widespread expectations from individual taxpayers. The Finance Minister, on the other hand, has offered people a reprieve in filing their updated income tax returns (ITR). In the event of less tax filing, the amended tax filing window will stay open for two years from the year of assessment, according to the FM.
“Taxpayers can now file an amended return within two years of the relevant assessment year to provide an opportunity to correct an error,” FM stated in announcing her 4th Union Budget.
Currently, if the department discovers that the assessee has failed to report certain income, it must go through a lengthy adjudication process. Instead, under this idea, the taxpayers will be entrusted with a trust that will allow the assessee to declare any income that she may have overlooked while filing her return. The Finance Bill contains all of the details of the plan. According to the FM, it is a positive step toward voluntary tax compliance.
The FM has also proposed that any income derived from the transfer of any virtual digital asset be taxed at 30%. Except for the cost of acquisition, no deduction in respect of any expenditure or allowance shall be allowed for computing such income, according to Sitharaman.
Her second major announcement on direct taxes was that the tax deduction ceiling for both Centre and State government employees would be raised from 10% to 14%, bringing state government employees’ social security benefits on level with those of Central government employees.