Finance Minister Nirmala Sitharaman, against all expectations, did not tinker with the personal income tax rates in the Budget for 2022-23. Sitharaman also did not raise the standard deduction, which was widely anticipated in view of elevated inflation levels and the impact of the pandemic on the middle class.
There was also no change in income tax slabs in the personal income tax category in the Budget unveiled on Tuesday.
However, FM Sitharaman announced some important measures for taxpayers and digital currency owners in her Budget speech today.
“The proposals in this budget, while continuing with our declared policy of a stable and predictable tax regime, intend to bring more reforms that will take ahead our vision to establish a trustworthy tax regime,” said Sitharaman.
From crypto tax to the new updated returns, here are the personal finance highlights from Budget 2022:
No change in I-T slabs
Even as the salaried middle class was looking forward to Finance Minister Nirmala Sitharaman announcing some populist measures in the Union Budget 2022, there was no change in income tax slabs for 2022-23. The income tax rates for 2022-23 were also not revised.
New ‘updated return’
FM Sitharaman proposed a new provision permitting taxpayers to file an Updated Return to correct omissions and errors in their original tax returns. This updated return can be filed within two years from the end of the relevant assessment year. Presently, if the department finds out that some income has been missed out by the assessee, it goes through a lengthy process of adjudication.
Alternate minimum tax rate and surcharge for cooperatives
In a bid to provide a level playing field between cooperative societies and companies, FM proposed to reduce the Alternate Minimum Tax for the cooperative societies to 15 percent from 18 percent earlier. She also proposed to reduce the surcharge on co-operative societies from the present 12 percent to 7 percent for those having a total income of more than Rs 1 crore and up to Rs 10 crore.
Tax relief to persons with disability
Sitharaman announced tax relief to persons with disabilities. Tax relief for persons with disability will be allowed annuity/lump sum payments if the guardian is above the age of 60 years. Earlier it was allowed only if the guardian was dead.
Surcharge on long-term capital gains capped at 15%
Surcharge on long-term capital gains on transfer of any assets could go up to 37 percent, Sitharaman said, which has now been capped at 15 percent.
EPF contribution deduction
Deduction on EPF contribution was brought to parity at 14 percent for both central and state government …….