The Indian government has recently proposed a significant change in the threshold for filing income tax returns. The proposal, which has been approved by the Union Cabinet, raises the threshold from the current ₹2.5 lakh to ₹10 lakh. This move is expected to bring relief to a large number of taxpayers and simplify the tax filing process.
The new proposal also introduces a single affidavit-cum-indemnity for taxpayers, which will replace the existing requirement of multiple affidavits. This will not only reduce the burden on taxpayers but also streamline the process of filing tax returns. Additionally, the proposal formalises the practice of companies issuing newspaper notices for shareholders’ meetings, making it a mandatory requirement.
The decision to raise the threshold for filing income tax returns is a welcome move for the common man. It will provide much-needed relief to the middle-class taxpayers who have been struggling with the rising cost of living. With the threshold being raised to ₹10 lakh, a large number of taxpayers will be exempted from filing tax returns, thus reducing their financial burden.
The introduction of a single affidavit-cum-indemnity is a step towards simplifying the tax filing process. Currently, taxpayers are required to submit multiple affidavits, which can be a tedious and time-consuming task. With the new proposal, taxpayers will only have to submit one affidavit, which will serve as a declaration of their income, assets, and liabilities. This will not only save time but also reduce the paperwork involved in filing tax returns.
Moreover, the proposal also formalises the practice of companies issuing newspaper notices for shareholders’ meetings. This will ensure transparency and accountability in the functioning of companies. It will also make it easier for shareholders to stay updated about the company’s activities and decisions. This move is in line with the government’s efforts to promote good corporate governance and protect the interests of shareholders.
The proposal has been met with positive reactions from various stakeholders, including taxpayers, tax experts, and industry bodies. They believe that the increase in the threshold will provide relief to a large number of taxpayers and encourage more people to come under the tax net. It will also reduce the compliance burden for small and medium enterprises, allowing them to focus on their business operations.
The introduction of a single affidavit-cum-indemnity has been hailed as a progressive step towards simplifying the tax filing process. It will not only reduce the burden on taxpayers but also help in curbing tax evasion. The government has also assured that the new affidavit will be legally binding and any false declaration will attract strict penalties.
The formalisation of company-issued newspaper notices has been welcomed by the corporate sector. It will bring more transparency and accountability in the functioning of companies, which will ultimately benefit the shareholders. This move is also expected to improve the overall corporate governance standards in the country.
In conclusion, the proposal to raise the threshold for filing income tax returns to ₹10 lakh, introduce a single affidavit-cum-indemnity, and formalise company-issued newspaper notices is a significant step towards simplifying the tax system and promoting good corporate governance. It will provide relief to taxpayers, reduce compliance burden, and ensure transparency and accountability in the functioning of companies. The government’s efforts to make the tax system more taxpayer-friendly and efficient are commendable and will go a long way in building a stronger and more prosperous nation.
