Budget 2022 highlights: Key income tax, personal finance proposals – Economic Times

Even though the finance minister did not make any big tax related announcements in the Budget 2022, there were a few tax-related proposals taxpayers should be aware of. Here is a look at key tax related and personal finance highlights from Budget 2022, according to a PIB press release.

To take forward the policy of stable and predictable tax regime:

  • Vision to establish a trustworthy tax regime.
  • To further simplify tax system and reduce litigation.

Introducing new ‘Updated return’:

  • Provision to file an Updated Return on payment of additional tax.
  • Will enable the assessee to declare income missed out earlier.
  • Can be filed within two years from the end of the relevant assessment year.

Tax relief to persons with disability:

  • Payment of annuity and lump sum amount from insurance scheme to be allowed to differently abled dependent during the lifetime of parents/guardians, i.e., on parents/ guardian attaining the age of 60 years.

Parity in National Pension Scheme Contribution:

  • Tax deduction limit increased from 10 per cent to 14 per cent on employer’s contribution to the NPS account of State Government employees.
  • Brings them at par with central government employees.
  • Would help in enhancing social security benefits.

Scheme for taxation of virtual digital assets:

  • Specific tax regime for virtual digital assets introduced.
  • Any income from transfer of any virtual digital asset to be taxed at the rate of 30 per cent.
  • No deduction in respect of any expenditure or allowance to be allowed while computing such income except cost of acquisition.
  • Loss from transfer of virtual digital asset cannot be set off against any other income.
  • To capture the transaction details, TDS to be provided on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold.
  • Gift of virtual digital asset also to be taxed in the hands of the recipient.

Core banking in Post Office:

  • All 1.5 lakh post offices would be connected to the central banking system.
  • 75 Digital Banking Units (DBUs) will be established in 75 districts by scheduled commercial banks.

Digital rupee introduction:

  • The Central Bank Digital Currency (CBDC), according to the Finance Minister, will provide a significant boost to the digital economy.
  • According to the Minister, digital currency will lead to a more efficient and cost-effective currency management system.
  • The Digital Currency will use blockchain and other technologies.


Source: https://economictimes.indiatimes.com/wealth/personal-finance-news/key-income-tax-personal-finance-highlights-from-budget-2022/articleshow/89272198.cms

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