Budget 2022 Income Tax Blocks, Fiscal Year 2022-23 Rates Live: Income Tax Calculator, Budget Impact
2022 Income Tax Blocks Live, 2022 Budget New Blocks and Income Tax Rates in India Highlights: Nirmala Sitharaman makes big announcements on affordable housing, post office.
2022 Income Tax Budget Live Updates: Finance Minister Nirmala Sitharaman today announced no changes to the personal income tax brackets and rates in the 2022 budget. The Finance Minister has proposed that a tax deduction be allowed on employer contribution up to 14% for state government employees. For taxpayers, the FM said they will be able to file an updated ITR.
“India is developing at an accelerating pace and people are undertaking multiple financial transactions. The Income Tax Department has established a strong framework for reporting taxpayer transactions. Against this backdrop, some taxpayers may realize that they have made omissions or errors in correctly estimating their income for the payment of tax. To provide an opportunity to correct these errors, I am proposing a new provision allowing taxpayers to file an updated return updated upon payment of additional tax. This updated return can be filed within two years of the end of the relevant assessment year,” Sitharaman said.
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The finance minister also said in the 2022 budget speech that this year, all post offices in the country will be integrated with customers of the central banking system. Thanks to this, postal account holders will be able to conduct online transactions and even transfer money to other bank accounts via netbanking.
Before the budget, taxpayers expected the announcement of changes to income tax brackets and rates. Some pundits thought the big bang tax relief might not be announced in the 2022 budget. However, the 2021-22 economic study tabled in Parliament on Monday January 31, 2022 raised hopes of greater tax relief for all types of taxpayers, including employees. , the elderly, NRIs and retirees.
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The Economic Survey has listed several taxpayer relief measures the government has taken since the outbreak of the Covid-19 pandemic (read the details here). Now that the economy looks poised to grow rapidly, hopefully the government will improve on last year’s tax announcements.
Finance Minister Nirmala Sitharaman was also expected to announce rules for taxing cryptocurrency income.
Income tax brackets have not been raised significantly over the years and are not linked to inflation unlike the taxation of gains from certain asset classes. As a result, over the years, the net income of employees and therefore their purchasing power has decreased while the cost of living has increased significantly.
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Experts expect that the filing of declarations will also be simplified for people whose salaries are below this threshold. The government had sought to reduce the tax burden of an individual taxpayer by introducing a new tax regime without exemptions and with lower tax rates. However, data shows that it has not become popular and employees are still choosing the earlier scheme as it lowers taxes in most cases. Read Live Share Market Updates Here
Stay tuned for live updates, analysis and explanations on income tax related announcements in Budget 2022