Taxpayers can file updated Income Tax return within two years
New Delhi, February 1, 2022
Finance Minister Nirmala Sitharaman today proposed to permit taxpayers to file an updated return on payment of additional tax within two years from the end of the relevant assessment year.
Presenting the Union Budget 2022-23 in the Lok Sabha, Sitharaman said this would give taxpayers an opportunity to correct any omissions or mistakes in correctly estimating their income for tax payment.
She pointed out that currently, if the department finds out that some income has been missed out by the assessee, it goes through a lengthy process of adjudication. The new proposal would repose trust in the taxpayer, she said.
“It is an affirmative step in the direction of voluntary tax compliance," she said.
The law currently provides for deduction to the parent or guardian when they take an insurance scheme for the differently abled person only if the lump sum payment or annuity is available to the differently abled person on the death of the subscriber. Pointing out that there could be situations where differently-abled dependents may need payment of annuity or lump sum amount even during the lifetime of their parents/guardians, Sitharaman announced that the Government proposes to allow the payment of annuity and lump sum amount to the differently-abled dependent during the lifetime of parents/guardians, on subscribers attaining the age of sixty years.
The minister said that to enhance the social security benefits of the State government employees and bring them at par with the central government employees, the Government proposes to increase the tax deduction limit to 14 per cent from 10 per cent on employer’s contribution to the NPS account of State Government employees.
Sitharaman stated that “a lot of time and resources are consumed in filing of appeals which involve identical issues”. In order to take forward the Government’s policy of sound litigation management and reduce repeated litigation between taxpayers and the department, the Government would make a provision that if a question of law in the case of an assessee is identical to a question of law which is pending in appeal before the jurisdictional High Court or the Supreme Court in any case, the filing of further appeal in the case of this assessee by the department shall be deferred till such question of law is decided by the jurisdictional High Court or the Supreme Court.