Income-Tax Slabs Remain Unchanged, Assesses Can File Updated Returns Within 2 Years Of Relevant AY: Highlights Of Union Budget 2022

The Union Finance Minister Nirmala Sitharaman today presented the Union Budget 2022-23 and stressed that it will lay the foundation for India's economic growth and expansion for the next 25 years. No announcements regarding changes in the income tax slabs were made in the budget speech.It may be noted that Article 112 of the Indian Constitution provides for the Union Budget of a year, also referred to as the Annual Financial Statement. Essentially, it is a statement of the estimated receipts and expenditure of the government for a particular year.In her 4th straight Budget speech, FM Sitharaman said that India's economic growth in the current year is estimated to be 9.2 percent, which highest among all large economies. She also stressed that the government aims to attain the followings visions:Complementing the macro-economic level growth focus with a microeconomic level all-inclusive welfare focus, Promoting digital economy & fintech, technology-enabled development, energy transition, and climate action, and Relying on a virtuous cycle starting from private investment with public capital investment helps to crowd-in private investment.In her speech, she specifically said that Government will be prioritizing PM Gati Shakti, inclusive development, productivity enhancement and investment, sunrise opportunities, energy transition, and climate action.Here's a quick look at the major announcements made by Union Finance Minister Nirmala Sitharaman in her Budget speechPART BDirect taxTaxpayers can file an Updated Return on payment of additional tax. This updated return can be filed within two years from the end of the relevant assessment year.Assessee would be asked to declare the income that they may have missed out earlier while filing her return.Cooperative societies are required to pay Alternate Minimum Tax To the tune of 15 percent (reduced from 18.1%).Surcharge on co-operative societies reduced from present 12 per cent to 7 per cent for those having total income of more than ` 1 crore and up to ` 10 crores.The parent or guardian of a differently-abled person can take an insurance scheme for such person. There could be situations where differently-abled dependants may need payment of annuity or lump sum amount even during the lifetime of their parents/guardians, therefore, the Government has allowed the payment of annuity and lump sum amount to the differently-abled dependent during the lifetime of parents/guardians, i.e., on parents/ guardians attaining the age of sixty years.At present, the Central Government contributes 14 per cent of the salary of its employee to the National Pension System (NPS) Tier-I. This is allowed as a deduction in computing the income of the employee. However, such deduction is allowed only to the extent of 10 per cent of the salary in case of employees of the State government.Therefore, to provide equal treatment to both Central and State government employees, the Government has now increased the tax deduction limit from 10 per cent to 14 per cent on employer's contribution to the NPS account of State Government employees as well. Eligible start-ups established before 31.3.2022 had been provided a tax incentive for three consecutive years out of ten years from incorporation. In view of the Covid pandemic, the Government had extended the period of incorporation of the eligible start-up by one more year, that is, up to 31.03.2023 for providing such tax incentive. Any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent. Income of a non-resident from offshore derivative instruments, or over the counter derivatives issued by an offshore banking unit, income from royalty and interest on account of lease of ship and income received from portfolio management services in IFSC shall be exempt from tax, subject to specified conditions. Any surcharge or cess on income and profits is not allowable as business expenditure. No set off, of any loss shall be allowed against undisclosed income detected during search and survey operations.In order to remove inconsistency, it is proposed to amend section 194-IA of the Act to provide that in case of transfer of an immovable property (other than agricultural land), TDS is to be deducted at the rate of one per cent. of such sum paid or credited to the resident or the stamp duty value of such property, whichever is higher. In case the consideration paid for the transfer of immovable property and the stamp duty value of such property are both less than fifty lakh rupees, then no tax is to be deducted under section 194-IA.Indirect taxes It is proposed to phase out the concessional rates in capital goods and project imports gradually and apply a moderate tariff of 7.5 per cent. Certain exemptions for advanced machineries that are not manufactured within the country shall continue. A few exemptions are being introduced on inputs, like specialised castings, ball screw and linear motion guide, to encourage domestic...

Income-Tax Slabs Remain Unchanged, Assesses Can File Updated Returns Within 2 Years Of Relevant AY: Highlights Of Union Budget 2022

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Income-Tax Slabs Remain Unchanged, Assesses Can File Updated Returns Within 2 Years Of Relevant AY: Highlights Of Union Budget 2022

Sparsh Upadhyay

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