Union Budget 2022: I-T slabs same, returns window wider

A worker at the construction site of a flyover, in Jammu on Tuesday. Pic/AP

Belying expectations, Finance Minister Nirmala Sitharaman did not tinker with the personal income tax rates in the Budget for 2022-23, perhaps picking a safe ground ahead of assembly elections in five states.

The minister also did not raise standard deduction, which was widely anticipated in view of elevated inflation levels and impact of the pandemic on the middle class. The standard deduction currently stands at Rs 50,000.

There was no change income tax slabs in the personal income tax category in the Budget unveiled on Tuesday. The corporate tax rate too was kept at the same level. However, concessional rate of 15 per cent has been extended by one year for newly incorporated manufacturing units.

Though the government has yet to confirm whether and how it will allow cryptocurrencies, the Budget speech appeared to confirm it. Sitharaman said that income from digital assets will be taxed at 30 per cent, the highest tax band in the country.

To provide impetus to trust-based governance as a concept, an updated tax return system has been introduced wherein a taxpayer can file a tax return upon payment of specified taxes within 2 years from the end of the relevant assessment year.

To give a boost to the start-up community, she capped the surcharge on long-term capital gains at 15 per cent now.

The minister raise spending on highways to affordable housing with a view to fire up the key engines of the economy to sustain a world-beating recovery from the pandemic.

Like last year, this year's Rs 39.5 lakh crore Budget gave a big boost for infrastructure spending - from 5G spectrum auction, expanding national highways by 25,000 kms. The Budget's "approach is driven by seven engines," Sitharaman said, listing roads, railways, airports, ports, mass transport, waterways and logistics infrastructure as the key areas.

Sensex gains 848 points

The BSE Sensex jumped over 848 points to close at 58,862.57 on Tuesday, as investors cheered the infrastructure boost provided in the Budget. The Nifty gained 237 points to end at 17,576.85.

Rs 1.4l cr
GST collection in January

Don't chuck last year's umbrella

. India's growth estimated at 9.2 per cent, to be highest among large economies
. Duty relief on parts of mobile phone chargers, camera lens of mobile camera module
. Customs duty on umbrellas raised to 20 per cent; exemption to parts of umbrellas withdrawn
. Customs duty on cut, polished diamonds, gemstones cut to 5 per cent
. Customs duty of at least Rs 400 per kg to be paid on imitation jewellery import
. Tax deduction limit increased from 10 per cent to 14 per cent on employer's contribution to the NPS account of state govt employees
. Payment of annuity and lump sum amount from insurance scheme to be allowed to differently abled dependent during the lifetime of parents/guardians
. e-Passports with embedded chip, futuristic technology to be rolled out
. Battery swapping policy to be brought out for setting up charging stations

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