Budget 2022 Key Takeaways: Union Budget 2022 Key Announcements For Taxpayers

Nirmala Sitharaman, the finance minister, has announced some important tax adjustments for taxpayers. The finance minister stated during her budget address that taxpayers can submit a revised return on tax payment within two years after the end of the relevant assessment year. The new clause, according to FM, will ensure tax submission and decrease disputes for all individual taxpayers.

The finance minister also stated that income proceeds from virtual/digital assets will be subject to a 30% tax with no deductions other than the cost of acquisition. According to the finance minister, a 1% TDS would be imposed on payments made for the transfer of digital assets. Employer contributions to the National Pension System (NPS) will now be deducted at a rate of 14 percent for state government employees, up from 10 percent previously.

Duty concessions are also being offered to stimulate electronics production, including wearables and other physical devices, according to the finance minister. The finance minister, on the other hand, has made no changes to personal tax rates or slabs, nor has he increased any exemptions or deduction limitations.

The finance minister also stated that a digital asset receiver will be taxed at a rate of 30%, with no change in income tax slabs. Import duty on certain chemicals will be reduced, customs duty exemption on steel scrap will be extended for another year for small and medium-sized businesses, customs duty on stainless steel, flat products, and high steel bars will be terminated, and unblended fuel will be subject to an additional duty of 2 rupees per litre beginning in October 2022, according to the finance minister.

As the government has brought in 30% tax on cryptos income, Archit Gupta, Founder and CEO, ClearTax said that "Government has brought in 30% tax on cryptos income, where no deduction for any expenses except cost of acquisition shall be allowed. Gift of virtual assets shall also be taxed for the recipient. This clears the air on taxes for cryptos, however, there are several types of incomes people earn from cryptos and hopefully, more clarity will be available in the Budget documents."

Vijay Singhania, Chairman, TradeSmart also stated that "Investors were relieved that the Finance Minister Nirmala Sitharaman has not announced any increase in taxes especially on long-term capital gains tax on equity investments in her Budget speech. The FM has capped the LTCG on equity at 15 percent, which should be beneficial for shareholders of unlisted companies. No new taxes have been imposed on corporate India too. Capping LTCG on unlisted companies is good for HNIs and also for venture capitalists."