Presenting the budget on February 1, Finance Minister Nirmala Sitharaman did not make any changes in the income tax slab. However, relief has been given on ITR. Making changes in the income tax rules for taxpayers, the Finance Minister said that taxpayers can update income tax returns for 2 years from the end of the assessment year.
Tax Reforms in Budget 2022: The tax payer, who is waiting for relief on tax, has been disappointed this time in the budget as well. Presenting the budget on February 1, Finance Minister Nirmala Sitharaman did not make any changes in the income tax slab. There was an expectation of increasing the limit of tax free income, but no such announcement was made. However, relief has been given on ITR. Making changes in the income tax rules for taxpayers, the Finance Minister said that taxpayers can update income tax returns for 2 years from the end of the assessment year. He can rectify any kind of mistake within 2 years. For this, a new sub-section (8A) will be included in section 139 of the Income Tax Act, 1961.
Big relief on ITR
Reforming in the matter of income tax, the Finance Minister has given relief to the taxpayers on Income Tax Return i.e. ITR. It was announced in the budget that after filing ITR, it will be able to be updated for 2 years. Correction in income tax return can be done for 2 years from the end of the taxpayer’s assessment year. However, an additional 25 to 50 percent tax will have to be paid on the interest and tax due on the additional income.
TradeSmart CEO Vikas Singhania says that investors are relieved that Finance Minister Nirmala Sitharaman in her budget speech has not announced any increase in tax on long-term capital gains, especially on equity investments. LTCG on equity has been capped at 15 per cent, which should be beneficial to the shareholders of unlisted companies. No new tax has been imposed on Corporate India also. The LTCG limit on unlisted companies is also good for HNIs and venture capitalists.
current tax slab
income tax
2.5 lakh 0%
2.5-5 lakh 5%
5-7.5 lakh 10%
7.5-10 lakh 15%
10-12.5 lakh 20%
12.5-15 lakh 25%
15 lakh+ 30%
What else was announced on tax
Corporate tax has been reduced from 18 percent to 15 percent in the budget. Surcharge cannot be levied more than 15 per cent on any LTCG tax. Finance Minister Nirmala Sitharaman says that the surcharge on cooperative societies, whose income is between Rs 1 to 10 crore, has been reduced from 12 to 7 percent. If you have forgotten to mention any income in the return, then you will be allowed to include that income in the return. Although it was expected that the scope of 80C will be increased, but the old limit of 1.5 lakh investment under 80C will remain the same.
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