The central government can take initiative to improve the tax system. After the increased collection in the current financial year, the process of filing ITR can be made easier. Some changes in the tax system are expected from next year.
The central government can move towards tax reforms and it can start from the general budget of 2023. In the current financial year, there has been an increase of 26 percent in the tax collection of the government. After this the government is going to take initiative for tax reforms. To make the Income Tax Return (ITR) easier, its format can be changed. It is being said that this change will make it easier for taxpayers to file income tax returns.
Number of ITR forms may decrease
According to PTI news, the government may reduce the number of forms for filing Income Tax Return (ITR). This will ease the work of return filers and reduce the time taken in filing. After the Kovid epidemic, the government has taken several measures to stop tax evasion. Due to this, direct and in direct tax collection has increased in the current financial year. In view of this, the government has now made a plan to reform the tax system.
Stricter tax rules
The government can take more strict action against tax evaders in the coming days. Along with this, apart from online gaming, stricter tax rules can also be considered for e-commerce and online service providers. Some changes in the new tax system are expected from next year, as the government seeks to make the non-exempt tax system more attractive to taxpayers.
Two types of options
There are two types of options available in the current tax system of India. During the budget of the financial year 2020-21, Finance Minister Nirmala Sitharaman had announced the new tax regime. In this way, two tax options are available and taxpayers can choose any one of them. There are many types of tax deduction options in the old tax regime. At the same time, most of these have been removed in the new structure.
Understand the new and old tax structure
In the new tax structure, annual income up to Rs 2.50 lakh is tax free. After this, Rs 2.5 lakh is taxed at the rate of 5 per cent. After this, Rs 2.5 lakh is taxed at the rate of 5 per cent. Coming to the old tax structure, income up to Rs 2.5 lakh is tax-free. After this, income between 2.5 lakh to 5 lakh is taxed at the rate of 5%. But this also becomes zero due to getting a rebate of Rs 12,500 from the government.
