Budget 2022-23: Finance Minister Nirmala Sitharaman, while presenting the budget on Tuesday, did not announce any major tax relief for individual taxpayers. However, from the point of view of crypto investors, it proved to be an important budget. By imposing tax on virtual or digital assets, the central government has in a way stamped on crypto business. Along with this, all the speculations about its ban in the country have also come to an end. A large number of Indians and especially the youth have invested in cryptocurrencies.
Apart from this, there are many such proposals included in the budget, which will have a direct impact on your pocket in the next financial year i.e. FY 2022-23. Here we are telling you about some such announcements of the Finance Minister, whose budget has been announced in 2022.
Finance Minister Nirmala Sitharaman on Tuesday announced the imposition of tax on transactions of virtual digital assets such as bitcoin and ethereum. “Income from transfer of any virtual digital assets will be taxed at the rate of 30 per cent,” the finance minister said in his budget. It is to be noted here that like equity market, there is no provision of different tax on any kind of short-term or long-term holding. If you sell cryptocurrencies immediately or after a few years, you will have to pay a tax of 30 percent on the total income from it.
Apart from this, the Finance Minister has announced to levy 1 percent TDS on the transfer of virtual assets on payments made above a certain limit. Also, announcing the imposition of tax on virtual digital assets received as gifts, the Finance Minister said that the person receiving the gift will have to pay tax. The Finance Minister said that no deduction will be available on any amount spent on virtual assets other than the cost of acquisition. Nor can it be shown as a set off against any other income loss.
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2. Taxpayers who have filed wrong ITR will get a second chance
Taking a big step in the direction of giving relief to honest taxpayers, the government said that taxpayers will be able to update the income tax return for two years after filing it. There is no provision for any kind of penalty under the new provision. However, the taxpayer will have to pay tax on the tax applicable on the additional income disclosed in the ITR. Taxpayers will have to pay an additional 25 to 50 percent tax on the outstanding interest and tax on the additional income. Tax expert Sanjay Srivastava says that this announcement in the budget will give a lot of relief to the taxpayers. Due to non-availability of such facility, honest taxpayers used to face problems. If by mistake they missed any income, then they were afraid of getting notice.
3. Surcharge on Long Term Capital Gains limited to 15%
The Finance Minister announced to limit the surcharge on long term capital gains to 15 percent. This provision will be applicable to all types of assets. At present, this provision is applicable only to listed shares and units of mutual funds. Experts say that at present the limit of surcharge on long-term capital gains of listed shares and equity funds is fixed at 15 per cent. However, there was no cap on surcharge on long term capital from other assets. It was calculated on the basis of total income. This difference has ended with the announcement about this in the budget of the Finance Minister.
Also read- Budget 2022: You will be able to update income tax return within two years, know its terms and conditions here
4. NPS contribution of state government employees up to 14% tax-free
State government employees have been given relief on contribution to the National Pension Scheme (NPS). Finance Minister Nirmala Sitharaman has increased the tax deduction on her contribution to NPS from 10 per cent to 14 per cent. The Finance Minister said that crores of taxpayers will benefit from this announcement of ours.
5. Relief for the disabled on the tax front
The central government has given relief to the disabled on the tax and insurance front. The Finance Minister said that the person who is fighting with physical disability will be given tax relief. Parents or guardians of a person suffering from disability can take an insurance scheme for such a person. No tax will be levied on payment of annual or lump sum premium for a disabled dependent and will be exempted for life.
6. Will raise money by issuing green bonds
Finance Minister Nirmala Sitharaman said in her budget speech on Tuesday that she would issue green bonds to raise money. He informed that the allocation for capital expenditure for the financial year 2022-23 is being increased from 35.4 per cent to Rs 7.5 lakh crore. He said that in the coming financial year, the effective capital expenditure will be Rs 10.68 lakh crore or 4.1 percent of GDP. The government will release all the information about how to invest in green bonds, how much interest will be available on it, while issuing green bonds in the next financial year.
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