Page 104 - economic_survey_2021-2022

78 Economic Survey 2021-22

ANNEX

Annex 1: Direct Tax measures by CBDT during 2021-22

Improvements in tax administration

¾ In continuation with the Government’s emphasis on providing a more transparent, efficient
and tax-payer friendly tax administration and improving taxpayer convenience, several
initiatives have been launched by the Government. These will also ensure promotion of
investment and employment generation.

Ease of compliance for taxpayers

¾ 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. Interaction with taxpayers is characterized by a spirit of trust and respect,
relying more on voluntary compliance.

¾ A new e-filing portal was launched in 2021 with improved 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.

¾ To ease burden of 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.

¾ 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.

¾ 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.

¾ To reduce the compliance on small charitable trusts running educational institutions and
hospitals, relief by way of tax exemption to such trusts has been provided by the Finance Act
2021 by increasing the existing threshold of annual receipts from Rs 1 crores to Rs 5 crores.
Certain improvements have also been introduced in the registration process for charitable trusts
with the Department including online process for filing of application, on-line processing of
the applications and passing of the registration orders, online filing of donation statements by
donee etc.

¾ To reduce litigation, Finance Act 2021 has introduced a special mechanism for dispute
resolution to reduce the disputes particularly for small and medium taxpayers having