Taxpayers were hopeful of an increase in exemption limits and reorientation of tax slabs, which was absent from the Union Budget.

But the finance minster instead proposed a set of calibrated changes in Tax Collected at Source (TCS), extending certain due dates for filing returns and rationalising various penalty and prosecution.

The budget has proposed to reduce the TCS rate on the sale of overseas tour programme packages from the current 5 percent and 20 percent to 2 percent without any threshold. There is also a proposal to reduce the TCS rate for education and medical remittances under the Liberalised Remittance Scheme from 5 per cent to 2 percent.

Assessee having income from profits and gains of business or profession whose accounts are not required to be audited under the Income Tax Act or under any other law in force and partner of a firm whose accounts are not required to be audited their due date for filing of return is proposed to be extended from 31st July to 31st August. However, individuals who file ITR-1 & ITR-2, their due date for filing return of income shall remain 31st July.

Section 263(5) allows a taxpayer to revise an original or belated return to rectify any omission or wrong statement, relating to income, deductions, exemptions, losses, or any other particulars. The prescribed time limit for filing the revised return has been proposed to be increased from existing 9 months to 12 months from the end of the relevant tax year.

The budget has also proposed that that where an updated return is filed in pursuance of a notice issued under section 280 within the period specified in the said notice, the additional income-tax payable shall be increased by a further sum of 10 per cent of the aggregate of tax and interest payable on account of furnishing the updated return.

Narayan Jain is a tax advocate