Express News Service
With respect to the direct tax proposals, the budget has
stipulated streamlining of income tax return filings with
electronic verification and provision for quick refund mechanism
(within 24 hours). The budget proposes automation of scrutiny
assessments, which will be done electronically through anonymised
back office within the next two years. This should result in
increased transparency and help in curbing corruption and
red-tapism. However, to be able to make the process seamless and
hassle free for the taxpayer, the necessary infrastructure would
need to be developed.
The budget has proposed a tax rebate of Rs 12,500 for
individuals with annual income up to Rs 5 lakh. While this reduces
the tax burden on middle class taxpayer, there is an anomaly that
needs to be addressed. The proposal seems to disincentivise certain
individuals earning more than Rs 5 lakh as they may end up with
lesser income in their hands after payment of taxes against
