Budget 2022: Govt proposals on income tax, corporate tax, NPS, digital assets

  • Union budget 2022-23: The central government has proposed a new provision for permitting taxpayers to file an updated return on payment of additional tax.
No changes in the income tax rates and slab have been proposed by the government for Union Budget 2022-23.(REUTERS/File Photo)
No changes in the income tax rates and slab have been proposed by the government for Union Budget 2022-23.(REUTERS/File Photo)
Published on Feb 01, 2022 01:06 PM IST
Copy Link

Several tax-related announcements were made by Union finance minister Nirmala Sitharaman on Tuesday as she presented the Union budget 2022-2023. While the government has not made any changes in the income tax slab, it announced taxation on transfer for virtual digital assets.

Digital assets

Sitharaman said that the government has decided to levy 30% tax, the highest tax band in the country, on income arising out of the sale of digital assets. However, losses from the sale of digital assets will not be offset against other income, she added.

"Introduction of a central bank digital currency will give a big boost to digital economy. Digital currency will also lead to a more efficient and cheaper currency management system," Sitharaman said while presenting the budget.

The government has proposed an additional 1% TDS (tax deducted at source) on payments made in relation to the transfer of virtual digital assets. Recipients of gifts in the form of virtual digital assets will also be taxed.

National Pension Scheme

The government has proposed to increase tax deduction from 10% to 14% on the contribution by state governments in National Pension Scheme for their employees. On the other hand, it has proposed an increase in tax deduction limit on contribution in NPS by state government employees from 10% to 14%. Sitharaman said that the changes have been proposed to help the social security benefits of state government employees to provide equal treatment at par with the central government employees.

Full Budget coverage here

Income Tax

No changes in the income tax rates and slab have been proposed by the government for Union Budget 2022-23. The government has proposed a new provision for permitting taxpayers to file an updated return on payment of additional tax. The updated return can be filed within two years from the end of the relevant assessment year.

Corporate Tax

Sitharaman said a concessional corporate tax rate of 15% would be available for one more year till March 2024 for newly incorporated manufacturing companies.

SHARE THIS ARTICLE ON
Close Story
SHARE
Story Saved
×
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Wednesday, June 29, 2022