What Changes Have Been Made In Budget 2022 Regarding Income Tax?

With the announcement of the new Union Budget for the year 2022, many changes have been made in various departments including the payment slabs of income tax return India. One of the highlights of the Union Budget was the changes made for digital assets such as cryptocurrencies and NFTs. The Finance Minister of India, Nirmala Sitharaman made the announcement of the changes that took place in the finance department along with income tax. There were no major changes made in this section but the few changes are mentioned below.

Here are some of the important changes made in the Union Budget regarding income tax : 

• Same Income Tax Slabs:

There were many changes as compared to the previous budgets in this year’s Union Budget. But the one thing that didn’t change is the tax rates and the slabs for the income tax. Just like before, the same tax rates will be applied to various people with varying incomes per annum. That is the people earning Rs. 2,50,000 per annum will pay 5% income tax, whereas the people above 15,00,000 will give 30% income tax along with additional charges. Thus, there was no major change in the income tax return India department.

• In Case Of Delayed ITR Filing:

In case a person fails to do the ITR Filing in India of their income tax returns, then they can file it 3 months before the assessment year. This will be termed as a belated return or a revised return as per ITR. The assessment year for 2022-2023 will be before 31st December 2023. 

• Tax For Transfer Of An Immovable Property:

In case of the transfer of immovable property, except agricultural land, at the rate of 1 per cent of the sum paid to the resident or stamp duty value, TDS (Tax Deducted at Source) will be deducted. If the sum credited or the stamp duty value is less than fifty lakhs, then no tax will be deducted.

• No Wealth Tax Or Inheritance Tax:

There have not been any prospects or proposals for the application of any kind of tax rates for wealth tax or the inheritance tax in India. Thus, the step which could have made a huge step in reducing the difference between the rich and poor and inequality of income is still delayed with no prospect of happening in the future.

• Tax Deduction For Government Employees:

With the announcement of no major changes in the tax rates for the income tax returns, the Finance Minister also informed that the TDS, i.e. the Tax Deduction rates for both central as well as state government employees will increase from 10% to 14%. This move was taken into consideration to make the social security benefits of both states as well as central government employees at par with each other.

These are the changes made in the Union Budget of the year 2022 in the case of the income tax return in India.