{"id":6721,"date":"2022-02-02T17:46:46","date_gmt":"2022-02-02T12:16:46","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=6721"},"modified":"2022-02-03T14:51:55","modified_gmt":"2022-02-03T09:21:55","slug":"tax-proposals-in-budget","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/tax-proposals-in-budget\/","title":{"rendered":"Union Budget 2022 &#8211; Tax Proposals"},"content":{"rendered":"\n<p><a href=\"https:\/\/www.tickertape.in\/blog\/mainpoints-sectorwise-union-budget\/?utm_source=blog&amp;utm_medium=article\">Union Budget 2022<\/a> was the second paperless budget in Indian history, presented on 1 February by Finance Minister Nirmala Sitharaman. There were a slew of initiatives aimed at boosting the economy in the face of high and growing inflation. However, there were little changes to the personal <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax\/\">income tax<\/a> system. Let\u2019s look at all the tax related proposal updates this year\u2019s Budget brought forward.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/tax-proposals-in-budget\/#Tax-proposals-impacting-Individuals\" title=\"Tax proposals impacting Individuals\">Tax proposals impacting Individuals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/tax-proposals-in-budget\/#Tax-relief-to-person-with-disability\" title=\"Tax relief to person with disability\">Tax relief to person with disability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/tax-proposals-in-budget\/#Parity-between-employees-of-the-states-and-central-government\" title=\"Parity between employees of the states and central government\">Parity between employees of the states and central government<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/tax-proposals-in-budget\/#Tax-exemption-on-COVID-19-related-medical-expenditure-as-well-as-on-financial-assistance-provided-in-case-of-death-caused-by-COVID-19\" title=\"Tax exemption on COVID-19-related medical expenditure as well as on financial assistance provided in case of death caused by COVID-19\">Tax exemption on COVID-19-related medical expenditure as well as on financial assistance provided in case of death caused by COVID-19<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/tax-proposals-in-budget\/#Virtual-digital-assets\" title=\"Virtual digital assets\">Virtual digital assets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/tax-proposals-in-budget\/#Taxation-on-gift\" title=\"Taxation on gift\">Taxation on gift<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/tax-proposals-in-budget\/#Tax-deducted-at-source-TDS\" title=\"Tax deducted at source (TDS)\">Tax deducted at source (TDS)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/tax-proposals-in-budget\/#Limit-on-tax-free-Income-from-provident-funds\" title=\"Limit on tax-free Income from provident funds\">Limit on tax-free Income from provident funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/tax-proposals-in-budget\/#Agriculture-and-Infrastructure-Development-Cess\" title=\"Agriculture and Infrastructure Development Cess\">Agriculture and Infrastructure Development Cess<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/tax-proposals-in-budget\/#Changes-in-customs-duty\" title=\"Changes in customs duty\">Changes in customs duty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/tax-proposals-in-budget\/#Reduction-in-time-for-income-tax-proceedings\" title=\"Reduction in time for income tax proceedings\">Reduction in time for income tax proceedings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/tax-proposals-in-budget\/#Exemption-from-audit\" title=\"Exemption from audit\">Exemption from audit<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax-proposals-impacting-Individuals\"><\/span><strong>Tax proposals impacting Individuals<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The <a href=\"https:\/\/www.tickertape.in\/blog\/no-changes-in-income-tax\/?utm_source=blog&amp;utm_medium=article\">income tax rates for individuals<\/a> remain unchanged except, surcharge on all long term capital gain (LTCG) to be capped at 15%.&nbsp;<\/li><li><a href=\"https:\/\/www.tickertape.in\/blog\/economic-survey\/?utm_source=blog&amp;utm_medium=article\">Budget 2022<\/a> intends to bring more reforms that will establish a trustworthy tax regime. Which in turn will simplify the tax system and promote voluntary compliance by taxpayers.<\/li><li>The Income Tax department has also established a robust framework of reporting taxpayers\u2019 transactions.&nbsp;<\/li><li>In this context some taxpayers may realise that they have committed omissions or mistakes in correctly estimating their income for tax payment.&nbsp;<\/li><li>To provide opportunity to correct such mistakes Nirmala Sitharaman proposed a new provision permitting taxpayers to file an updated return on payment of additional tax.&nbsp;<\/li><li>Due to this, taxpayers can file the updated income tax returns once within two years from the relevant Assessment Year.&nbsp;<\/li><li>It is considered to be an affirmative step in the direction of voluntary compliance.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax-relief-to-person-with-disability\"><\/span><strong>Tax relief to person with disability<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Sitharaman proposed the payment of annuity or lump sum amount to the differently-abled dependent during the lifetime of the guardian attaining the age of 60 yrs.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Parity-between-employees-of-the-states-and-central-government\"><\/span><strong>Parity between employees of the states and central government<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>In the National Pension Scheme (<a href=\"https:\/\/www.tickertape.in\/blog\/is-nps-good\/\">NPS<\/a>), to provide equal treatment for both central and state govt employees, Sitharaman proposed to increase the tax deduction limit from 10% to 14% on the employer&#8217;s contribution to the NPS account of state govt employees as well.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1002\" height=\"2560\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/02\/TT-2-Feb-Union-Budget-Taxes-scaled.jpg\" alt=\"\" class=\"wp-image-6738\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/02\/TT-2-Feb-Union-Budget-Taxes-scaled.jpg 1002w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/02\/TT-2-Feb-Union-Budget-Taxes-117x300.jpg 117w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/02\/TT-2-Feb-Union-Budget-Taxes-401x1024.jpg 401w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/02\/TT-2-Feb-Union-Budget-Taxes-601x1536.jpg 601w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/02\/TT-2-Feb-Union-Budget-Taxes-802x2048.jpg 802w\" sizes=\"(max-width: 1002px) 100vw, 1002px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax-exemption-on-COVID-19-related-medical-expenditure-as-well-as-on-financial-assistance-provided-in-case-of-death-caused-by-COVID-19\"><\/span><strong>Tax exemption on COVID-19-related medical expenditure as well as on financial assistance provided in case of death caused by COVID-19<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Exemption for:<\/p>\n\n\n\n<ul><li>Any amount of money received by an individual from anyone (including the employer) for COVID-19 medical care for self and\/or family, subject to specific criteria (as may be notified).<\/li><li>Any amount of money received by a member of the dead employee&#8217;s family from the employer (without limit) due to COVID19-related disease within 12 mths of death, subject to specific criteria (as may be notified).<\/li><li>Any amount of money obtained by a member of the deceased individual&#8217;s family from other people up to Rs. 1 mn. on account of COVID19-related disease within 12 mths of death, subject to specified circumstances (as may be notified).<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Virtual-digital-assets\"><\/span><strong>Virtual digital assets<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Cryptocurrency and non-fungible tokens are examples of virtual digital assets. The federal government will notify other digital properties.<\/li><li>Income from the transfer of any <a href=\"https:\/\/www.tickertape.in\/blog\/rbi-to-issue-digital-rupee\/?utm_source=blog&amp;utm_medium=article\">virtual digital asset will be taxed at 30%<\/a> beginning in fiscal year 2022-2023.<\/li><li>There is no deduction permitted for any expenditure (other than acquisition costs) or allowance, or for writing off any loss.<\/li><li>It is not permitted to set off losses incurred on the transfer of virtual digital assets against any other revenue. Carrying such losses forward to following years is likewise prohibited.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Taxation-on-gift\"><\/span><strong>Taxation on gift<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>A gift of virtual digital assets is taxable.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax-deducted-at-source-TDS\"><\/span><strong>Tax deducted at source (TDS)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Payments made to a resident in exchange for the transfer of virtual digital assets will be subject to a 1% <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-tds-and-how-to-file-it\/\">TDS<\/a> from 1 July 2022.<\/li><li>The concessional tax rate of 15% on dividends received by Indian corporations from selected overseas companies has been removed with effect from FY 2022-2023.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Limit-on-tax-free-Income-from-provident-funds\"><\/span><strong>Limit on tax-free Income from provident funds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The tax exemption on interest income from provident fund contributions made by workers will be restricted to Rs. 2.5 lakh.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Agriculture-and-Infrastructure-Development-Cess\"><\/span><strong>Agriculture and Infrastructure Development Cess<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The cess will be collected on certain imported products such as <a href=\"https:\/\/www.tickertape.in\/blog\/the-golden-behaviour-during-crisis\/\">gold<\/a>, silver, alcoholic drinks, coal, and cotton, and the basic customs duty will be decreased by the same amount.<\/li><li>The cess will be imposed at the rates of Rs. 2.5 and Rs. 4 per litre on petrol and diesel, with similar reductions in excise duty.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Changes-in-customs-duty\"><\/span><strong>Changes in customs duty<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Customs duty on various commodities, including cotton, silk, and some car and mobile parts, has now been raised.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reduction-in-time-for-income-tax-proceedings\"><\/span><strong>Reduction in time for income tax proceedings<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The time limit for reopening income tax assessments will be shortened from 6 yrs to three years.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exemption-from-audit\"><\/span><strong>Exemption from audit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Businesses that conduct 95% of their transactions online and have a revenue of less than Rs. 5 cr. are exempted from maintaining audited accounts. The limit will be raised to Rs. 10 cr.<\/li><\/ul>\n\n\n\n<p>Please share your thoughts on the Union Budget 2022 in the comments area below.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The individual income tax slab is unchanged, but there are numerous new tax proposals in Budget 2022. To learn more, read this article.<\/p>\n","protected":false},"author":54,"featured_media":6722,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[10,1744],"tags":[1262,1233,325,209,1261],"acf":[],"modified_by":"Ayushi Mishra","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/02\/2-feb-Blog-Banner2-01.jpg?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/6721"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/54"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=6721"}],"version-history":[{"count":2,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/6721\/revisions"}],"predecessor-version":[{"id":6739,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/6721\/revisions\/6739"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/6722"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=6721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=6721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=6721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}