Interestingly, on the surface there are no major tax law changes from Indian Budget 2022, but many announcements as a whole to bring back the economy on it's wheels. Document covers Top 10 frequent questions from the perspective of a normal tax payer.
There are NO major changes in tax rates or increase in Deductions or allowances for FY 2022-23. The Tax rates which were proposed by Budget 2020 are applicable for FY 2022-23 also. Taxpayers can follow either old regime with deductions or the new tax slabs without deductions similar to previous financial years
Know more about Difference between Old Tax Regime and New Tax Regime.
Know your Tax exposure using Income Tax Calculator for FY 2022-23
There are no major changes in Chapter VIA deduction. The only change is in Section 80DD.Now the parents /guardian can claim deduction u/s 80DD if they take a Life Insurance policy even on the payment of Lumpsum amount or annuity to disabled dependants during the lifetime of Parents/guardian attaining the age of 60 years
Earlier the deduction was allowed only if the lumpsum or annuity received by disabled people only after death of parents or guardian
Yes, it is partially true. Now the taxpayers can file updated returns on payment of additional tax. Updated returns can be filed within 2 years from the end of relevant assessment year. Updated returns cannot be filed in following situations
No changes or new rules has been notified in Budget 2022 for NRI's .
Budget 2022 has ended the long-awaited suspense on Cryptos due to it's spread in Indian society with an announcement of new Digital Rupee initiative that would be regulated by RBI
As per Budget 2022, any income from transfer of virtual digital asset will be taxed @ 30%. No Deduction in respect of expenditure except purchase cost is allowed. Losses from transfer of virtual digital asset cannot be adjusted against any other income
More on Virtual Digital Assets or Cryptos or Cryptocurrencies @
There are no such major changes in GST. Rationalisation in GST slab rates to promote some, and discourage import-oriented goods and / or services is missing in GST
The Period of incorporation of eligible start-up is extended by 1 more year i.e., 31st Mar 2023. Start-ups incorporated before 31st Mar 2023 can get the tax incentives for 3 consecutive years out of ten years from incorporation
Customs Duty rationalisation to promote domestic production. Promoting domestic manufacturing and helping India get onto global value chain and export better. Following are some proposed changes
Budget 2022 has not proposed any changes in corporate affairs. Earlier rules are applicable for current year also
There is no change in tax rates applicable on Long Term Capital gains. Surcharge is capped @ 15% on long term capital gains arising on transfer of any assets. This step will boost the start-up community
More emphasis on Infrastructure spending, raised customs duty to create jobs. No new changes to Taxes (Income Tax & GST)