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

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

Thefinance 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 withno 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.