Indian Union Budget 2022: No change in income tax rates, tax relief for persons with disabilities

WION Web Team
New Delhi Updated: Feb 01, 2022, 01:34 PM(IST)

Tax in India Photograph:( IANS )

Story highlights

Indian finance minister Nirmala Sitharaman in Budget 2022 allowed provision for tax players to file updated return on payment of taxes within two years from the end of the assessment year.

Indian finance minister Nirmala Sitharaman during the Budget presentation 2022 applauded taxpayers for the highest-ever GST collection. 

The finance minister proposed no change in income tax rates and slabs in Budget 2022 while announcing that the government will provide a one-time window to correct omissions in income tax returns filed by citizens.

Key highlights:

  • The government proposed to increase tax deduction from 10 per cent to 14 per cent on contribution in National Pension System (NPS) by state government to employees.
  • Concessional corporate tax rate of 15 per cent for 1 more year till March 2024 for newly incorporated manufacturing companies.
  • Tax players can file updated return on payment of taxes within two years from the end of assessment year.
  • New provision to ensure voluntary tax filing and reduce litigation.
  • 30 per cent tax on income from transfer of virtual digital assets with no deduction on expenses except cost of acquisition.
  • The government also proposed to issue sovereign green bonds to mobilise resources as part of the governments borrowing programme.
  • Sitharaman said that outlay for capital expenditure has been stepped up by 35.4 per cent to Rs 7.5 lakh crore in FY'23.
  • To extend the period of incorporation by 1 year up to March 31, 2023 for startups to avail tax incentives.
  • Import duty on certain chemicals to be reduced.
  • Customs duty exemption on steel scrap to be extended for another year for small-and medium-sized businesses.
  • Customs duty on stainless steel, flat products, high steel bars to be revoked
  • 1 per cent TDS to be levied on payments made on transfer of digital assets.
  • In a significant move, finance minister Nirmala Sitharaman announced tax relief for persons with disabilities. 
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