India Budget 2022: Gains and pains for taxpayers, investors, businessmen, and consumers |

Must read

NEW DELHI: Finance minister Nirmala Sitharaman on Tuesday presented the Union Budget 2022 in the Lok Sabha which will lay the foundation for India’s economic growth and expansion for the next 25 years.
In her Budget speech, Sitharaman said that this year’s budget seeks to lay the foundation and give a blueprint of the economy over Amrit Kal of next 25 years – from India at 75 to India at 100.
Here’s a look at the pains and gains for taxpayers, for investors, for businessmen, and consumers:
Union Budget 2022: Complete Coverage
For Taxpayers
Gain:
*Payment received from employer or any other for Covid-19 treatment to be nontaxable.
*Payment received by kin for Covid death is also non-taxable (subject to an aggregate limit of Rs 10L for that received from people other than the employer).
*Taxpayers to get 3 years from the end of relevant fiscal to update tax return and pay additional tax. The extension is also available if they miss the deadline for filing belated or revised returns.
*State government employees eligible for deduction of employer contribution to NPS up to 14% of salary; brings parity with central government employees.

Pain:
*No loss to be set off against undisclosed income from searches, surveys.
*Updated returns to be accompanied with payment of additional tax of up to 50% of liability.
For Investors
Gain:
*RBI to introduce central bank digital currency in FY2022-23.
*Surcharge on long-term capital gains from the sale of any capital asset (other than listed securities) capped at 15% from earlier up to 37%. This brings tax on the sale of unlisted shares on a par with the sale of listed shares.

Pain:
*Any income from transfer (including gift) of virtual digital asset to be taxed at 30%. No deduction/set-off of loss allowed except cost of acquisition of the asset.
*1% TDS on purchase of virtual digital asset subject to prescribed thresholds.
For Businessmen
Gain:
*Benefit of deduction of 100% profits extended to startups incorporated by March 31, 2023.
*Beneficial rate of 15% available for newly incorporated domestic mfg cos extended to those commencing production up to March 31, 2024.
*Basic custom duty rates to rise over next 4 years to support phased local mfg of wrist wearables, smart watches, hearables, smart electric meters and their parts.

Pain:
*Benefits or perquisites over Rs 20k received in course of a business or profession to attract 10% TDS.
*Over 350 customs duty exemptions withdrawn, 40+ to be phased out.
For Consumers
Gain:
Custom duty on import of cut and polished diamonds and gemstones reduced from 7. 5% to 5%.
Pain:
Customs duty on imitation jewellery increased to higher of 20% or Rs 400/kg.



Source link

More articles

- Advertisement -

Startup

Sonam Kapoor Invests In Metaverse Platform ‘MechaFightClub’

MechaFightClub is a metaverse gaming platform with every character in the game being individually unique, artificially intelligent non-player-character living on the blockchain Irreverent Labs...
- Advertisement -

Latest article