Finance Minister Nirmala Sitharaman presented the Union Budget 2021-22 in Parliament today. The minister made many major announcements including a 2020 report, allocations to farmers and a relief for pensioners.
Sitharaman confirmed that the senior citizens who receive pension and are also dependent on interest income, will not have to pay income tax. The senior citizens who are of 75 years and above will receive this exemption.
They will not have to file income tax returns. This decision was taken by the centre in order to provide relief to the senior citizens. "Exemption to filing IT returns for senior citizens above 75 years,” said the finance minister.
''For those above 75 years of age with pension as their only source of income, the government has granted exemption from filing income tax returns. 'We shall reduce the compliance burden on our senior citizens who are 75 years of age & above - for senior citizens who only have pension & interest income, I propose exemption from filing their Income Tax return,'' added Sitharaman.
Sitharaman announced that a dispute resolution committee will also be set up by the government. This committee will be set up for taxpayers with income upto Rs. 50 lakh. She said that the tax system should be such that it doesn't burden the taxpayers.
It was proposed that the time limit to reopen the assessment case to be reduced to 3 years from the current 6 years limit.