Presenting the union budget 2022, Finance Minister Nirmala Sitharaman announced further simplification in tax system, making it handy for the common person.
Introducing new updated return system where a person can file updated return within two years of the filed IT Return, FM said that this measure will enhance tax compliance and make the process easier for millions of people.
Finance Minister announced a reduction in the customs duty on cut & polished diamonds and gems, reducing it to 5%. Under new announcements, existing tax benefits for start-ups, which were offered redemption of taxes for three consecutive years, will now be extended by one more year.
FM Sitharaman in the budget, proposed to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30%. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except cost of acquisition.
Custom duties on important chemicals like acidic acid & methanol have also been reduced. Finance minister said that faceless customs have done exceptional work against all odds and been an enabler in PLI and ‘Ease of Doing Business’.
She expressed pleasure at the record GST collection. It is to be noted here that GST revenues are buoyant despite the pandemic. Gross GST collection for month of January is over Rs. 1.4 lakh crore, the highest since the inception of GST.
In the new budget announcements, virtual digital assets have been taxed at 30% and 1 % TDS on transfer of virtual digital assets. Clearly, if one does any sale or acquisition of virtual, digital assets, he would be required to pay 30% tax on that income.
However, tax deduction limit will be reduced for central government employees from 18% to 15% in their contribution to NPAs.
FM Nirmala Sitharaman stressed on the need for parity between state and central government employees. Tax deduction on EPF for state government employees has also been announced.
Reduction in surcharge of cooperative societies from 12% to 7% for those having income below one crore, has also been announced by the FM. Now the reduced alternate minimum tax for cooperatives will be 15% from 18.5% earlier.
On this occasion, FM Sitharaman also appreciated the tax payers, saying they deserve applause as they have diligently contributed to fulfilling their responsibilities in improved tax and GST.
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