InvestorQ : How will the 2022 union budget of India impact tax rates?
Niharika Kamble made post

How will the 2022 union budget of India impact tax rates?

Nikita Damle answered.
12 months ago
On February 1, the Indian Finance Minister Nirmala Sitharaman announced the Union Budget for the year 2022. Before the announcement of the Union Budget, common salaried citizens were expecting that the budget would bring some positive changes by raising the exemption limit of Rs 2.5 lakh. However, the Union Budget has come as a disappointment as the Finance Minister kept the Income Tax slabs unchanged with no further tax exemptions.

With the announcement, the Income Tax department will follow the same income tax slabs as before, where people with Rs 2.5 lakh as annual income will be exempted to pay taxes. However, the Union Budget has introduced a 30% tax on income from selling or acquiring virtual, digital assets. The announcement has somewhat guaranteed the regulation of cryptocurrencies and other virtual assets, which investors have been speculating since the government announced The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.

Furthermore, now the taxpayers who have made errors while filing a return (omission of income, etc.) can file updated returns by payment of taxes within two years from the end of the relevant assessment year. The budget has also capped the surcharge on AOPs and long-term capital gains at 15%.

With the announcement, the Union Budget is expected to have a negligible impact on the prevailing tax regime in India. The only positive impact for the common taxpayers is the option of filing updated returns within two years.