Finance Minister Nirmala Sitharaman presented the fourth Budget of the second term of the Modi government today. The stage for the Budget presentation was set by the Economic Survey stating that the government has the fiscal space to do more to support the economy that is forecast to grow at a healthy 8-8.5 percent growth in 2022-23 fiscal. The key announcements are as under.
- No changes in income tax slabs
- Income from Long Term Capital Gains will be taxed at 15%,
- Taxpayers can file an updated return on payment of taxes within two years from the end of relevant assessment year.
- 30% tax on proceeds of virtual/digital assets with no deductions other than cost of acquisition.
- No set off permitted against other income
- 1% TDS to be levied on payments made on transfer of digital assets
- Deduction for employer contribution to NPS increased to 14% from 10% earlier for State govt employees on par with central govt employees.
- e-passports using embedded chips and futuristic technology would be rolled out from next year for more convenience to the public, in line with international rules.
- In 2022-23, 80 lakh houses will be completed for identified beneficiaries of PM Awas Yojana; 60,000 houses will be identified as beneficiaries for PM Awas Yojana in rural & urban areas.
- Customs duty on diamond to be reduced to 5%
- ‘One Nation, One Registration’ will be established for anywhere registration to facilitate ease of living & doing business.
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