Budget 2022: From the general budget of the Finance Minister, a big relief was expected to the common people regarding the tax, but as the Finance Minister read the speech. The hopes of the common people got mixed in the water. The Finance Minister has not made any changes regarding the tax. But it is not that the taxpayer has not got anything. Union Finance Minister Nirmala Sitharaman said on Tuesday that the government will give a one-time extension to rectify errors and omissions in the Income Tax Return (ITR).
Presenting the budget in Parliament for the financial year 2022-23, he said that the updated return will have to be filed within two years. The Finance Minister said that the government has also proposed to reduce the Minimum Alternate Tax (MAT) for cooperatives to the level of corporate tax i.e. 15 percent.
Tax slabs not changed
In the budget, the Finance Minister has announced provisions related to income tax. The government has not given any tax-related concession to the taxpayers. However, certain segments have definitely benefited. Apart from this, the expectations of the middle class of increasing the standard deduction limit amid the Kovid epidemic have also not been fulfilled in the budget. At present, the standard deduction limit is Rs 50,000.
Tax benefits to the parents of Divyang
Announcing in the budget, the Finance Minister said that now the parents of disabled children will be given tax exemption. Apart from this, the scope of tax exemption in pension to state government employees has been increased. Now state government employees will also be able to contribute 14% to NPS. Till now this limit was 10 percent. Apart from this, it was announced to reduce the tax rate of 18 percent to 15 percent for cooperative societies. It has also been proposed to reduce the surcharge from 12 percent to 7 percent. The Finance Minister said that the income base has also been increased to 10 crores instead of 1 crore. Talking about other announcements, the government has also announced to give tax incentives to startups till March 2023.
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Know what investors say
Income Tax expert Satyendar Jain said, “Amidst the pandemic, the common man was expecting that the Finance Minister would limit the standard deduction to Rs 1 lakh, which would increase the cash in his hand amid the pandemic.” Any move would have been of great relief to the middle class. Apart from this, the deduction of interest on house property was also expected to be increased from Rs 2 lakh to Rs 3 lakh, Jain said. But no relief has been given on this front as well. On buying a new house, the interest on a housing loan up to Rs 2 lakh is deducted from the other income of the taxpayer, thereby reducing his tax liability. This is called interest deduction on house property. There is no change in the slab in the personal income tax category in the budget. Simultaneously, the corporate tax rates have also been kept unchanged. However, the concessional tax rate of 15 percent for newly formed manufacturing units has been extended for one year.
