New Delhi: Contrary to expectations, Finance Minister Nirmala Sitharaman did not tinker with the personal income tax rates in the Budget for 2022-23. The minister also did not raise the standard deduction, which was widely anticipated in view of elevated inflation levels and the impact of the pandemic on the middle class.
The standard deduction currently stands at Rs 50,000. There was no change in income tax slabs in the personal income tax category in the Budget unveiled on Tuesday. Some taxpayers feel they have committed errors while filing income tax returns. To rectify this, the Finance Ministry proposed a system to file updated returns within two years from the end of the relevant assessment year.
"With this, the trust reposed on assessee herself that she may have missed out on the assessment. It is an affirmative step towards the direction of voluntary compliance. We have further simplified the tax system. Introducing new updated returns where people can file updated returns within 2 years of the filed IT Return," the Union Minister said.
The corporate tax rate too was kept at the same level. However, the concessional rate of 15 per cent has been extended by one year for newly incorporated manufacturing units.
Finance Minister said a concessional corporate tax rate of 15 per cent would be available for one more year till March 2024 for newly incorporated manufacturing companies.
She also proposed a 30 per cent tax on income from the transfer of virtual digital assets. One per cent tax deducted at source (TDS) on the transfer of virtual assets above a threshold, gifts would be taxed, the minister said.
The Prime Minister's Development Initiative for North East will be implemented through the North Eastern Council, with an initial allocation of Rs 1,500 crore, she added.
Also read: 30% tax on income from cryptocurrency, virtual assets: Finance Minister
