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India

Personal Income tax rates unchanged, no raise in standard deduction in Budget 2022

In order to provide equal treatment to central & state govt employees, Sitharaman has proposed to increase tax deduction limit from 10% to 14% on the employer's contribution to the NPS account of the state govt. employees as well. This will enhance their social security benefits.

Image used For Representational Purpose. (Photo: Pexels)

New Delhi: Finance Minister Nirmala Sitharaman in her Budget speech in the Parliament on Tuesday has not touched the income tax brackets. Contrary to widespread expectations that the FM will make an announcement on the income tax bracket, she had nothing to offer.

In order to provide equal treatment to central & state govt employees, Sitharaman has proposed to increase tax deduction limit from 10% to 14% on the employer’s contribution to the NPS account of the state govt employees as well. This will enhance their social security benefits.

The Finance Minister in her speech has announced a new tax rule for taxpayers where a taxpayer can file an updated return on payment of taxes within two years from the end of the relevant assessment year.

Nirmala Sitharaman said, “taxpayers can file updated ITR within two years of the relevant assessment year.”

This is a new provision that will ensure voluntary tax filing and reduce litigation, she further said. 1% TDS will be levied on payments made on the transfer of digital assets Long term capital gains to be subject to surcharge only at 15% for all assets.

The corporate tax rate too was kept at the same level. However, concessional rate of 15 per cent has been extended by one year for newly incorporated manufacturing units.

(With PTI Inputs)

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