Govt Allows Switching of Tax Scheme As Per Convenience

In a bid to simplify the taxpayer’s compliance, the Central Board of Direct Taxes (CBDT) has announced that the taxpayers are now free to switch between newer income tax slab offering lower tax implication from the current one without exemptions.

As per the statement, it was said that “Let it be very clearly noted that this is an optional scheme there no compulsion for you to go to the new scheme, If you find the new scheme preferable, you can move to it. If you’re better off in the old system, then you can continue”.

It is to be noted that the Nirmala sitharaman, the union finance minister announced budget on February 1st 2020. The statement further said that “Further, this option (of switching) is available to you on a year-on-year basis that a very interesting proposition, “If I feel availing a certain deduction this particular year, my old set-up is better, I opt for that. But if a new regime offers me a better rate, I can opt for it”.

The chairman of CBIC also noted that the deductions and exemptions will be phased out sooner or later to make the tax structure more understanding and easy for the common man.

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However, the said condition will not be applicable on the business, as the chairman of CBIC cleared in the statement, “The only restriction would be in case of a person with a business.”

Apart from this, there were also talks on the pre-filled income tax return forms available on the portal in the taxpayer’s account which would mean to be simplifying the income tax return filing procedure New Filing System for filing Simplified Returns under GST has been the fiery topic since past few months. Read More more fluid.

The CBIC chairperson further added that “An equal portion (of potential taxpayers) in the unorganised sector which is going untouched they ought to be in the tax framework, “I think there a case in the future to further lower taxes. Broader the base, a better case there would be more tweaking of the income tax rates also.”

Also the government this time assured that the taxpayer will not be harassed on the unverified grounds and further widening the tax base through the trust of people.