Filling The Gaps In Individual Taxation

Individuals have been building up expectations from Budget 2023, especially given that the Indian economy has shown promise so far and proved to be one of the few bright spots in a slowing global trend. The prospects have been based on the belief that the government will continue the momentum on the measures taken last year to address the tax concerns of individuals. With the intent to move to a trust-based governance regime, the Finance Act 2022 introduced a scheme for voluntary filing of ‘updated returns’, within a specified timeframe, with additional tax payment of 25 per cent and 50 per cent, depending on the period of delay. The amendment has been beneficial for those who missed filing their tax returns. However, the provisions do not help in cases where a refund is sought, where claim for loss must be made, or where there is a decrease in tax liability. This has been...