India Union Budget 2021: Key tax reforms

New Delhi - The government has left direct taxes unchanged, but took steps in direct tax incentives to ease compliance for taxpayers.

Senior citizens above 75 years of age with only pension and interest incomes have been exempted from filing tax returns, Finance Minister Nirmala Sitharaman announced on Monday.

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While tabling the Union budget 2021-22 in Parliament, the minister said that the number of income tax return filers has increased to 6.48 crores now from 3.48 crores in 2014.

The government has left direct taxes unchanged, but took steps in direct tax incentives to ease compliance for taxpayers.

“We shall reduce the compliance burden on our senior citizens who are 75 years of age and above. For senior citizens who have pensions and interest income, I propose exemption from filing their income tax returns. The paying bank will deduct the necessary tax from their income,” she said.

Here are the other key tax proposals

* Exemption from filing income tax returns for senior citizens (75 years and above) who only have pension and interest income. The paying bank will deduct the necessary tax on their income.

* Reducing time limit for reopening of income tax assessment.

* Constitution of a dispute resolution committee for small tax payers