Ease of Filling?
For ease of the process
of filing income tax return, then finance minister said that PAN and Aadhaar will be made interchangeable for the convenience of taxpayers. Or in other words, Income Tax returns can now on be
filed using Aadhaar number, if PAN card not available.
Also, the government is
planning to introduce pre-filled returns. This means tax-payers will get
pre-filled details of their tax details when they download the pre-filled form
from the income tax website.
They just need to verify the details and submit the form.
Deduction
or Not?
In another significant
change, the government today announced an additional deduction of 1.5 lakh on interest paid on loans
borrowed up to 31 March 2020, for purchase of house up to 45 lakh And, in order to provide
an impetus to affordable housing scheme, additional relief of 1.5 Lakh per year has been provided to
first-time homeowners."
The government also
announced 1.5 lakh income tax
deduction on interest paid on loans for the purchase of electric vehicles.
No Relief for the
High Net Individuals?
· In addition, the
surcharge on individuals having taxable income from 2 crores to 5 crore
and 5 crores will be increased
with effective tax rate going up around 3%
and 7% respectively.
They
have also proposed that persons who enter into certain high-value transactions
have to mandatorily file their tax returns even if their taxable limit is less
than 2.5 lakh. The transactions
include depositing an amount exceeding 1 crore in one or more current accounts; has incurred an expenditure of more than 2 lakh for himself or any other the person for travel to a foreign country; or has incurred an expenditure of an
amount or aggregate of the amounts exceeding 1lakh towards consumption of electricity.
The government
today increased income tax surcharge for HNIs
(high net worth individuals) earnings of more than 2 crores a year. Those earning between 2-5 crore will have shell out 3% more, with surcharge rate being increased from 15% to 25%. Those earning above 5 crores will have to shell out a surcharge of 37%, from the current 15%.
Also, the government announced 2% TDS on cash withdrawal on the amount exceeding 1 crore in a year.
"The budget was an effort at laying down a clear roadmap for tax administration over the next five
years with the introduction of a slew of measures specifically aimed at simplifying
the tax filing process, e-assessment process, and interchangeability of PAN with
Aadhaar. Additionally, the ideology of taxing the super-rich continues to be
carried out by increasing the surcharges”.
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