Page 41 - NIS - English,16-30 September,2022

Sankalp Yatra of New India Cover Story

New taxation system 31

making life easier for taxpayers.

In order to provide substantial relief to
n
individual taxpayers and to simplify the
income tax laws, the government in the
2020 budget introduced a new system
for filing income tax returns. The new tax
system has been brought in through the
Finance Act 2020. The new tax system
is optional for taxpayers, and with this
people are able to save more in income
tax.
Full relief in payment of income tax for
n
income up to Rs. 5 lakh. The tax rate has
been reduced from 10% to 5% for the tax
slab of Rs 2.5 to Rs 5 lakh. The standard
deduction has been increased from Rs
40,000 to Rs 50,000.
Filing an ITR in less time has now become
n
easier with the pre-filled income tax return
forms. There is electronic verification of
IT returns and appeals.
All communications from the IT
n
department are electronically generated
with a unique document identification
number, and PAN and Aadhaar can now
be used interchangeably.
Faceless Assessment, Tax Reforms

Important steps have
been taken in the direction n About 5.83 crore ITRs have been filed for the financial year
of tax reform. The 2022-23 till July 31, 2022. The number of ITR filings set a new
faceless assessment record on July 31, 2022, with over 72.42 lakh ITRs being filed on
system was introduced a single day.
with respect to honest
taxpayers. Faceless n Direct tax receipts for the fiscal year 2022-23 up to June 16,
assessment has greatly 2022 increased by more than 45 percent over the same period
helped in the process last year. Gross tax collection for the financial year 2022–23
of verification, scrutiny, grew at a rate of around 40 per cent. At the same time, advance
assessment, appeal, and tax collection for the financial year 2022-23 stood at Rs
issuance of refunds for 1,01,017 crore, reflecting a growth of over 33 per cent.
filing Income Tax Returns.

New India Samachar September 16-30, 2022 39