Ahead of the 2019 general elections, many economic and political pundits had thought that the Centre shall bring about a revision in the tax slabs to reduce the burden on the middle class salaried workers. Currently, the citizens falling under the bracket of Rs 2.5-5 lakh bracket pay 5 percent tax. The government was considering giving a tax and procedural relief to this low-income group.
The Union minister said tax scrutiny would be done electronically and there will be no interaction between the tax authority and the taxpayer.
“Within nearly two years, almost all assessment and verification of IT returns will be done electronically by an anonymized tax system without any intervention by officials. All income tax returns to be processed within 24 hours and refunds to be issued simultaneously,” Goyal said.
There were strong like hold that the investment limit under Section 80 C shall witness an increase so as to help the citizens to reduce their tax burden. However, there was no announcement made in this regards. Every year taxpayers have an expectation that the limits for deduction under Section 80C of the Income-tax Act will be enhanced. Presently the limit is INR 150,000 and it is an expectation that it may be increased to INR 250,000, which will enable tax savings for taxpayers and more inflow into various savings and investments schemes.