The Finance Bill (Bill) for the fiscal year 2021-22 presented on February 1 has proposed changes to the tax laws which would be effective from April 1. A clear theme of the bill is simplification and reductions in the compliance burden and levels of tax litigation. Some of the initiatives include altering the taxation of foreign retirement provision, allowing tax appeals to take place without in person court appearances, eliminating the need to file returns for specified senior citizens, and changes to the tax treatment of certain investment schemes. No specific rules were introduced governing the taxation of workers whose residence has been changed for the fiscal year 2020-21, due to pandemic related travel restrictions.
A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.
