Union Budget 2021: Reopening assessment period to be reduced to 3 years from 10 years

“In the 75th year of Independence of our country, we shall reduce the compliance burden on senior citizens. For senior citizens who only have a pension and interest income, I propose exemption of filing of income tax returns,” Sitharaman said.

I propose to reduce the time limit for reopening of assessments (tax assessments) to 3 years from the present 6 years, she added. “In serious tax evasion cases, only where there is evidence of concealment of income of Rs 50 lakh or more in a year, can reassessment be opened for 10 years. For others, assessment reopening only for 3 years,” she said

The Finance Minister also announced that the NRIs will be spared from double taxation. “New rules to be notified,” she said. Sitharaman also announced that Tax audit limit has been increased from Rs 5 crore to Rs 10 crore.

 

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