FM Nirmala Sitharaman did not announce any changes to the income tax system in place. Speaking at budget session, she said, “ a series of reforms had been introduced by the Government for the benefit of tax payers and economy, including slashing of corporate tax rate, abolition of dividend distribution tax, and increasing of rebate for small tax payers.”
She said that income tax return filers have increased to 6.48 crore from 3.31 crore in 2014.
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She also proposed to exempt senior citizens above the age of 75 from filing income tax returns for senior who only have pension and interest. “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,” she said.
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FM Sitharaman also proposed to provide reduction in the time-limit for reopening of income tax proceedings to three years from the present six years. In serious tax evasion cases, where there is evidence of concealment of income of Rs. 50 lakh or more in a year, the assessment can be reopened upto 10 years but only after the approval of the Principal Chief Commissioner,” she said
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