Tax return within 2 years to benefit micro enterprises: OSSIA

New Delhi, Feb 1 (KNN) The announcement of tax returns within 2 years of its filling will help micro enterprises since they do not have separate departments to look into it, said Deepak Kajaria President of Orissa Small Scale Industries Association (OSSIA).

The Union Budget 2022-23 presented in the Parliament today proposes to permit taxpayers to file an updated return on payment of additional tax within two years from the end of the relevant assessment year.

Union Finance & Corporate Affairs Minister Nirmala Sitharaman while presenting the Union Budget 2022-23 in the Parliament today said this would give taxpayers an opportunity to correct any omissions or mistakes in correctly estimating their income for tax payment. 

She pointed out that currently, if the department finds out that some income has been missed out by the assessee, it goes through a lengthy process of adjudication, the new proposal would repose trust in the taxpayer. She said “It is an affirmative step in the direction of voluntary tax compliance”.

Reacting to this, OSSIA said, "Micro enterprises clearly had more expectations from the union budget such as creation of separate ministry for micro enterprises." 

Micro enterprises also anticipated for a more liberalise labour law so that more employment could have been generated, Kajaria stated. 

Further micro businesses were also looking coward to the easing of raw material prices and announcements of a more robust marketing policy for micro manufacturing enterprises. 

He also emphasised on the proactive prioritisation of investment in Drone driven Startups and extension of tax exemption by another one year.