To ease the process of filing income tax returns, the government is planning to introduce pre-filled returns. This was announced in the budget by Finance Minister Nirmala Sitharaman. The information will be collected from various sources such as mutual fund houses, registrars, and banks and it will available for download from the income tax e-filing website.
What this means tax-payers will get pre-filled details of their tax details when they download the pre-filled form from the income tax website. They just need to verify the details and submit the form.
The finance minister also said that faceless income tax assessment in electronic mode involving no human interface will be launched this year in a phased manner. This is aimed to reduce taxpayer harassment.
For further ease the process of filing income tax return, the finance minister said that PAN and Aadhaar will be made interchangeable for convenience of tax payers. Or in other words, income tax returns can now on be filed using Aadhaar number, if PAN card not available, the finance minister said. Presenting the first budget of the Modi government in its second term, Sitharaman said Aadhaar card for NRIs with Indian passports will be issued after their arrival in India, without waiting for the mandatory 180 days.
In another significant change, the government today announced additional deduction of ₹1.5 lakh on interest paid on loans borrowed up to 31 March, 2020, for purchase of house up to ₹45 lakh.
In addition, the surcharge on individuals having taxable income from ₹2 crore to ₹5 crore and ₹5 crore will be increased with effective tax rate going up around around 3% and 7% respectively.