New Delhi. In the Budget (Budget 2024), Finance Minister Nirmala Sitharaman has announced the removal of indexation benefits. Due to this, many people are confused that they may have to bear a loss on the sale of property. However, along with removing the indexation benefit, the government has also reduced the rate of capital gains tax on the sale of property from 20 percent to 12.5 percent.

The government says that by removing indexation, calculation of capital gains will become easier for the tax payer and the income tax department. Dainik Jagran had a special conversation with CBDT Chairman Ravi Agarwal on all these topics.

What is the purpose of removing the property indexation rule?

The main objective is tax simplification. It is not that this will generate more revenue. But the new regime of property tax is more beneficial. If the property rate has increased by two and a half times in ten years, then the new regime of 12.5 percent tax without indexation will be beneficial. There is no hassle in the new regime. By paying 12.5 percent tax on the difference between purchase and sale price, you can use that entire money anywhere.

What provision has been made in the budget to stop benami property?

The benamidar can be a small person in whose name the property is bought. Till now, there was a provision of punishment and penalty for the benamidar in this case. After the new announcement, if the benamidar comes forward with an open mind and discloses the actual situation, then his punishment will be forgiven and he will not be fined. There is a possibility of benefit from this change in the investigation of benami property which is going on right now, the benamidar can come forward and give correct information and this will reveal the benami property.

The process of review and simplification of Direct Tax Code is starting, what will happen in it?

It is not that a new code will come. We will make it more simple. There is still scope for simplification. How many taxpayers read the Income Tax Act, if we simplify it then the common taxpayer will not hesitate to read it. Many old things which have been removed are also in the code, all this is being repeated. The objective is that the common taxpayer should read and understand the tax law without anyone's help.

Dispute to Trust Scheme 2024 was announced in the budget to settle tax-related disputes. When will people be able to apply under it?

The notification of this scheme should come by August this year. The deadline to apply under this scheme will be 31 December. Application can be made under this scheme to resolve tax disputes related to any amount, only there should not be a search case in that matter. Last time, more than one lakh cases came under the Dispute to Trust Scheme and disputes worth Rs 75,000 crore were resolved.

How is the return filing going this year, more people will file compared to last year?

8.5 crore returns were filed in the last financial year. This time, 4.7 crore people filed ITR till 26 July. Last year, 6.77 crore returns were filed till 31 July, we will cross that number on 31 July this year. Another thing is that there are a large number of people whose TDS is deducted but they do not file ITR. The number of such people is also quite large. If we look at it, 12-12.5 crore people are in the income tax record book.

What is the target for direct tax collection in the current financial year?

The target is 22 lakh crores. 12.5 percent more than last financial year. 19.58 lakh crores were collected in the last financial year.

What are the main changes made in TDS in the budget?

The rate has been reduced. Earlier, one percent TDS was deducted on purchases above 50 lakhs, which has been reduced to 0.1 percent. Due to one percent TDS deduction, that much money used to get blocked till the return was filed, which led to shortage of working capital. Similarly, many rates were five percent which have been reduced to two percent.