Economic Survey 2021-2022: Several initiatives were launched by the Government in the previous financial year for providing provide a more transparent, efficient and tax-payer friendly tax administration, the Economic Survey 2022 noted today. It further said that these measures will ensure promotion of investment and employment generation. The Survey pointed out following relief measures announced by CBDT that have helped taxpayers amid the pandemic.

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Ease of compliance for taxpayers: The survey said that most of the processes and compliance requirements have been shifted to online platforms and the need for the taxpayers to physically visit the Income Tax Offices has been eliminated or minimized.

New e-filing portal: It was launched in 2021 with features such as a new taxpayer-friendly portal integrated with immediate processing of ITR return, pre-filled returns, free of cost ITR preparation software, new call centre for taxpayer assistance including chat bot/live agent and mobile app function.

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Relief for senior citizens above the age of 75 years: They have been given exemption from filing income tax returns if they only have pension income and interest income. In their case the specified bank will be responsible for computing their income and deduction of tax, the survey said.

Reassessement: The time limit for re-opening of assessment has also been reduced from six years to three years. Beyond the period of three years, only where there are books of account / documents/ evidence of concealment of income of Rs 50 lakh or more in a year represented in the form of an asset, can the assessment be re-opened up to a period of 10 years with the approval of the Principal Chief Commissioner of Income Tax.

Exemptions for NRIs: The Survey said certain non-resident persons have also been exempted from the requirement of furnishing of income tax returns, subject to fulfilment of prescribed conditions. The benefit of exemption is available from Assessment Year 2021-22 onwards. Relief has also been provided to NRIs regarding issues being faced on accrued incomes in their foreign retirement accounts.

Tax exemption in lieu of help to covid victims and their families: While noting that certain taxpayers lost their life due to COVID-19 and their employers and well-wishers had extended financial assistance to their family members during the crisis, the survey said it has been announced that income-tax exemption will be given to ex-gratia payment received by family members of a person from the employer in the event of death on account of COVID-19 during 2019-20 and subsequent years. The exemption is proposed to be allowed without any limit for the amount received from the employer and to be limited to Rs 10 lakh in aggregate for the amount received from any other persons.

Teh survey further said that Income Tax exemption will be provided to the amount received by a taxpayer for medical treatment for treatment of COVID-19 during 2019-20 and subsequent years.

Extended timelines: The Central Government also extended timelines for compliances under the Income-tax Act, 1961 such as furnishing of statements, filing of income tax returns etc. The time limits for passing various orders under various sections of the Income Tax Act were also extended due to COVID-19 pandemic. The last date of linkage of Aadhaar with PAN has been extended to 31st March 2022, the survey said.