The new Income Tax Bill will replace many of the current requirements that people must follow when completing their Income Tax Returns (ITRs). This has raised a key question: how different will the ITR filing process be from what we know now?
One of the significant new changes that has provided relief to many taxpayers is the fact that from next year, there are no penalties for submitting TDS declarations beyond the deadline. Even if taxpayers miss the ITR filing deadline, they will still be eligible for a tax refund, Financial Express reports.
This move provides relief for individuals and businesses who often struggle with meeting strict timelines, making compliance easier and less stressful.
Taxpayers who do not owe any taxes can now apply in advance for a Nil TDS Certificate. This prevents unnecessary tax deductions at the source. The benefit applies to both Indian residents and non-residents.
Pensioners who are beneficiaries of certain notified pension funds, such as the LIC Pension Fund, will continue to receive them without paying any taxes. The bill expressly provides for this deduction, guaranteeing that private sector employees and others who have independently invested in such funds receive the same benefit as paid government employees.
It is important to note that the current tax slabs and general structure are unchanged. Court-decided tax rates and definitions will continue to remain in effect. The new bill's purpose is to simplify the law and reduce the time and effort required to file tax returns.
