Finance Minister Nirmala Sitharaman during Union Budget 2023-34 presentation on Wednesday said the average processing time for Income Tax Returns (ITRs) will be reduced to 16 days from 93 days. The government also intends to roll out the new generation ITR forms and strengthen the grievance redressal mechanism.
The Union Budget 2023-24 proposes to roll out a next-generation common IT return form for tax payer convenience, the FM said. The Budget also stipulates a plan to strengthen the grievance redressal mechanism for direct taxes.
The Finance Minister also announced the deployment of about 100 Joint Commissioners for disposals of small appeals in direct tax matters. She also said that the department will be more selective in taking up cases for scrutiny of returns already received this year.
Amit Gupta, MD, SAG Infotech said “45% of ITRs are completed within 24 hours, and the Common ITR form will be available soon. Furthermore, to enhance the IT grievance redressal mechanism, and to increase the presumptive taxes limitations at Sec 44AD – Rs.3 crore and Sec 44ADA – Rs.75 lakhs”.
Sitharaman also announced several Direct Tax proposals with an aim to maintain continuity and stability of taxation, further simplify and rationalize various provisions to reduce the compliance burden and promote the entrepreneurial spirit.
