The government proposes to permit taxpayers to file an updated return on payment of additional tax within two years from the end of the relevant assessment year.
Finance Minister Nirmala Sitharaman announced this while presenting the Union Budget 2022-23 in the Parliament on Tuesday.
She said this would give the 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, and the new proposal would repose trust in the taxpayer.
She said, "It is an affirmative step in the direction of voluntary tax compliance."
The law currently provides for deduction to the parent or guardian when they take an insurance scheme for a 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 dependants 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 60 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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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