Tax Takeaways on Budget 2022: Top Tax Takeaways from The Budget Announcement

Union Finance Minister Nirmala Sitharaman unveiled a slew of tax breaks and changes on Tuesday. The main focus of the finance minister's speech, however, was a significant increase in capital spending - up 35% for FY23. These Are the Top Tax Takeaways from the Budget Announcement:

No change in Income Tax slab and rate

Contrary to popular belief, Finance Minister Nirmala Sitharaman has not announced any changes to the Income Tax Slab for 2022-23, which is a major disappointment for salaried taxpayers. Income tax rates for 2022-23 have likewise not been altered.

New ITR Rule: Taxpayers can now update ITR within 2 years

In addition to the announcement, a new tax regulation for taxpayers was revealed. Now, a taxpayer has two years from the end of the relevant assessment year to make an amended return on payment of taxes.

Income from LTCG will be taxed at 15%

The surcharge on long-term capital gains (LTCG) has been set at 15% in the budget for 2022. Long-term capital gains rates range from 10% to 20%, depending on the kind or class of assets. LTCG fee is now available exclusively on listed shares and mutual fund units.

Virtual/digital assets to be taxed at 30%

Any revenue derived from the transfer of any virtual digital asset will be taxed at a rate of 30%. There is no deduction for any expense or allowance other than the cost of purchase. TDS at 1% above a given monetary level.

Tax for cooperative societies reduced to 15%

The government recommends lowering the minimum alternative tax (MAT) for cooperative organizations from 18.5% to 15%, bringing them in line with private firms. Furthermore, the government has suggested lowering the levy on cooperative societies from 12% to 7% for those with a total income of more than 1 crore up to 10 crores.