New Delhi , Feb 2 : Central Board of Direct Taxes (CBDT) Chairman P C Mody on Tuesday said that CBDT is confident of achieving the revised tax collection target. In an exclusive interview to ANI, P C Mody said, "The revised estimate for direct tax collection this year is Rs 9.05 lakh crores, out of which we have collected Rs 6.63 lakh crores, in spite of we having refunded 7% more income tax returns in comparison to last year. I am very confident that we will achieve the target."
Responding to a query on the middle class expecting some relief in 80C limit and increase in exemption limit for medical insurance, he said that at a time when countries are imposing cess and increasing tax we have left tax slabs untouched as we didn't want to put more burden on people who already suffered a lot due to pandemic. It is not necessary that the government should reduce tax or give income tax exemptions in every budget, he added.
He also said that the government had reduced the compliance burden on senior citizens who are 75 years of age and above. "For senior citizens who only have a pension and interest income, we have given exemption from filing their income tax returns. The paying bank will deduct the necessary tax on their income. We have also reduced the time limit for re-opening of Income-tax assessment to 3 years from the present 6 years," Mody added.
The CBDT Chairman further said that the Budget has extended by one more year, the 2019 Union Budget provision of additional deduction of interest of Rs 1.5 lakh for a loan taken to purchase an affordable house.
Mody added, "CBDT has extended the eligibility for claiming tax holiday for start-ups by one year, till 31 March 2022 and further, in order to incentivise funding of the start-ups, We have also extended the capital gains exemption for investment in start-ups by one more year, till 31 March 2022."