With “Sab ka Prayas” FM Sitharaman delivers a level playing ground by addressing the disparities in the tax regime
No change in tax structure or tax relief in Budget 2022
The Union budget is the vision statement of the Central Government for the next fiscal year. For the common man, the most coveted announcements relate to personal taxes. The common man sets his eyes on this section with hope of relaxation in tax slabs and increase in limits of exemptions and deductions.
Tax slabs remains unchanged for 5 consecutive year of Budget presentation by Sitharaman(last revised by then FM Arun Jaitley in 2014)
The key highlights of the Budget 2022 on Direct taxes are as under-
- Introduction of New Updated Returns – An opportunity for the assessee to file updated return within 2 years fron the end of the relevant Assessment Year
- Reduction of AMT for Co-operative Societies from 18.5% to 15% ( at par with Companies) to provide a level playing ground. Further reduction in surcharge for Co-operative Societies from 12% to 7% having Total Income between Rs 1 crore to 10 crore to enhance the income of rural and agricultural co-operatives.
- Increase in the tax deduction from 10% to 14% on employers contribution to NPS for State Government employees , to bring them at par with their Central Government counterparts
- The financial minister has proposed to extend the period of incorporation of eligible startups by one more year for providing tax incentives to 31/03/2023
- Tax on Digital Asset to be taxed at 30% , while imposing TDS @1% for transfer of virtual digital assets.
- Surcharge on Long term capital gain on sale of any asset has been capped at 15% to bring at par with LTCG on listed equity shares
Stay tuned for more updates on Direct taxes on our upcoming mindshares.