scorecardresearchBudget 2022: Income Tax slabs remain unchanged

Budget 2022: Income Tax slabs remain unchanged

Updated: 01 Feb 2022, 01:23 PM IST

One of the most sought after announcements during every budget speech is related to income tax changes. Finance Minister Nirmala Sitharaman had this to say

Indian Rupee money stacks and banknotes on the table , closed up shot (Shutterstock)

Indian Rupee money stacks and banknotes on the table , closed up shot (Shutterstock)

Finance Minister Nirmala Sitharaman kept income tax slabs unchanged during her Budget 2022 speech. 

However, some key changes have been proposed that would affect the computation of income tax for people under different categories of income. These include the following:

1. Revised return: Government will provide one time window to rectify omissions in ITRs (income tax returns) filed. The updated returns can be filed within a span of two years.

2. NPS Contribution: The deduction allowed on contribution to NPS (National Pension System) will be raised from 10 percent to 14 percent for the state government employees.

3. Surcharge on LTCG: The FM also announced that the government has proposed to cap surcharge on the tax on long term capital gain at 15 percent. However, the loss cannot be set off against undisclosed income.

4. Surcharge: The corporate surcharge will be reduced from 12 percent to 7 percent.

5. Tax on digital assets: The transfer of digital assets will be taxed at 30 percent, for which no deduction or exemption would be allowed barring the cost of acquisition.

First Published: 01 Feb 2022, 12:29 PM IST