Cryptocurrency to be Taxed, No Change in Income Tax Slabs
Income Tax Announcements Budget 2022 LIVE Updates: Will Nirmala Sitharaman rejig the income tax slab to provide some relief to middle class taxpayers? Answer shortly. Union Budget to Start at 11 am Today
Income Tax Slabs, Budget 2022 LIVE Updates: Salaried middle class wants finance minister Nirmala Sitharaman to announce some populist measures in Union Budget 2022. “New provision Permitting tax payers to file an updated return on payment of additional tax, permitted up to two years,” said finance minister. Amid the third wave of Covid-19 outbreak, the individual taxpayers want more income relief from finance minister. All eyes are set on finance minister to know how government balances out the fiscal math and the populist measures to boost consumption.
Will FM present a Populist Budget this Year?
“The salaried middle class especially the ones working with MSMEs would not have had increments as in a normal year and the same is expected for the upcoming financial year as well. This coupled with the inflation is expected to cramp their spending ability,” said Sundara Rajan TK, partner at DVS Advisors LLP. In the view of this, there is an expectation that finance minister will provide some populist measure to put money in individual’s pocket.
The middle class taxpayers also expect an increase in Section 80C deduction under the Income Tax Act, special deduction for Covid-19 related medical expenses and reduced compliance burden such as non-filing of returns for all categories of individuals where TDS has been deducted.
High Networth Individuals (HNI) also expect FM to help them to spend more to revive the economy. The want Union Budget to reduce surcharge and bring some clarity on taxation of cryptocurrency, among others.
KPMG also suggested that Budget 2022 should realign the income slabs and tax rates for individuals under both the normal and concessional tax regimes.
“All securities (including derivatives) should be specifically excluded from the ambit of TDS /TCS provisions applicable to purchase/sale of goods.” it further added.
“We also expect the government to continue promoting the affordable rental housing schemes by announcing tax reliefs for rental housing projects, which will fast track the pace of investments in these schemes,” said Sandeep Runwal, president, NAREDCO Maharashtra and Managing Director, Runwal Group
Feb 01, 2022 13:20 IST
No Change in Personal Income Tax Rates in Budget
Belying expectations, Finance Minister Nirmala Sitharaman did not tinker with the personal income tax rates in the Budget for 2022-23. 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.
WATCH | Budget speech analysis
Feb 01, 2022 12:28 IST
Income Tax Budget 2022 LIVE Updates: NPS Changes Announced in Budget
Deduction for employer contribution to NPS increased from 10 per cent to 14 per cent for state govt employees on par with central govt employees. Not extended to non-govt employees.
Saraswathi Kasturirangan, Partner Deloitte India
Feb 01, 2022 12:24 IST
Income Tax Budget 2022 LIVE Updates: Bitcoin Investments to be Taxed
Taxation of virtual digital assets – Any income from taxation of virtual digital assets taxable at 30 per cent. TDS will be applicable beyond a specified monetary threshold
Feb 01, 2022 12:16 IST
Income Tax Budget 2022 LIVE Updates: Crypto to Attract Tax
Finance minister Nirmala Sitharaman says virtual digital assets to have tax regime: any income from transfer of such asset shall be taxed at 30 per cent
Feb 01, 2022 12:11 IST
Income Tax Budget 2022 LIVE Updates:
Taxpayers can file ITR within two years of the relevant assessment year, said FM
Feb 01, 2022 11:59 IST
Income Tax Budget 2022 LIVE Updates: Redefine the Definition of Affordable Housing Criteria
Anuj Puri, chairman – ANAROCK Group
According to the ministry of housing and urban poverty alleviation, affordable housing is defined based on the property size, its price, and the buyer’s income. For instance, affordable housing is a unit with carpet area up to 90 sq. m. in non-metropolitan cities and towns, and 60 sq. m. in major cities and valued up to Rs 45 lakh for both. The central bank’s definition, on the other hand, is based on the loans given by banks to people for building homes of buying apartments.
The government should seriously consider revising the city-wise pricing parameters to include a broader customer base under the benefits of extended to this segment. While the size of units as per its definition (60 sq. m. carpet area) is relatively appropriate, prices of units (up to Rs 45 lakh) are not viable across most cities. For instance, less than Rs 45 lakh budget is far too low for a city like Mumbai – it needs to be increased to at least RS 85 lakh.
Feb 01, 2022 11:42 IST
Income Tax Budget 2022 LIVE Updates: More Deduction for Homebuyers
Amit Gupta, founder & MD, SAG Infotech
The government needs to enable a specific deduction under 80C on the principal reimbursement of home loans. Under section 80C the limit has not been enhanced for a long time span and so a lot of items are already enfolded under the limit of Rs 1,50,000 already. Therefore, there is a huge exemption that will get increased by this year
Feb 01, 2022 11:37 IST
Budget 2022 LIVE Updates: Standard Deduction Limit to Increase
Amit Gupta, founder & MD, SAG Infotech
In order to alleviate the tax load of the employees and to remember the rate of inflation and buying power of the certain salaried, exempted from this budget to enhance the limit of the standard deduction from Rs. 50,000 to Rs 1,00,000. Budget 2022 might represent tax-free work from the home allotment for employees who are salaried. Permitting deduction for that kind of charge will emerge from the take-salary home, eventually making a demand for goods and services in the nation. ‘Because of the high direct tax collection in this financial year, there might be a way to enhance the tax deductions boundations. For example – the standard deduction accessible to those with salary income may have emerged, apparently at Rs. 50,000. Although, this may be regulated for inflation each year.
Income Tax Slabs, Budget 2022 LIVE Updates: Watch FM’s Speech LIVE
Feb 01, 2022 11:18 IST
Budget 2022 LIVE Updates: Income Tax Slab to Rejig in Budget 2022?
“The salaried middle class would expect for increase in the basic exemption limit which would give better relief. The spending habits have also been hugely impacted during the pandemic and such a relief would help revive the demand aspect as well in the economy,” said Sundara Rajan TK, partner at DVS Advisors LLP.
Feb 01, 2022 11:12 IST
Income Tax Slabs, Budget 2022 LIVE Updates: Scope of Section 80D Should be Expanded
Currently, Section 80D of the Income-tax Act allows deduction of up to Rs. 50,000 from gross total income in respect of any expenditure incurred on the medical treatment of a senior citizen (60 years or above) provided he is not covered under health insurance. Thus, the deduction for the medical expenditure is deductible when two conditions are satisfied. First, the person for whom the expenditure is incurred should be a senior citizen, and second, no medical insurance policy has been taken for such person.
Experts recommended that the scope of Section 80D should be expanded to every person (irrespective of age) to allow a deduction for expenditure incurred on medical treatment of Covid-19 for himself or a family member.
Income Tax Slab, Budget 2022 LIVE Updates: FM Presents Budget in Parliament
Income Tax Slab, Budget 2022 LIVE Updates: Work from Home Allowance?
Sundara Rajan TK, partner at DVS Advisors LLP
“THERE IS NO SPECIFIC TAX RELIEF EXPECTED FOR WORK FROM HOME SINCE IT WOULD BE DIFFICULT TO CARVE OUT THAT SECTION OF THE SALARIED CLASS WHICH HAS WORKED FROM HOME. CONSIDERING THIS, THE STANDARD DEDUCTION MIGHT BE INCREASED TO PROVIDE FOR THE INCREASED EXPENSES DUE TO WORK FROM HOME.”
Income Tax Slab, Budget 2022 LIVE Updates: Increase the Deduction Limit of NPS Investment
Tax2Win said in its pre-budget note:
The Union government should consider increasing the additional deduction limit for individuals from Rs 50,000 to Rs 100,000 when it comes to NPS. Today, Section 80C limit of Rs 150,000 is not enough for many taxpayers to save tax. Increasing the NPS limit for additional deductions will help people to save tax and encourage long-term investing. Also, the government should look at making it EEE (Exempt Exempt Exempt) from a taxation perspective. At present NPS account holders can withdraw 60 per cent at vesting age which is tax free and remaining 40 per cent is to be invested compulsorily in annuities. Akin to PPF, NPS withdrawal must be completely tax free.
Feb 01, 2022 10:03 IST
Income tax Slab, Budget 2022 LIVE Updates: Not All are Expecting Big Changes
Nitin Rao, CEO, InCred Wealth
“While there are murmurs going around on budget expectations, we must remember that the budget is coming in the midst of many state election campaigns. It is unlikely that the Govt will be able to announce any earth shattering reforms or populist measures since the Code of Conduct is in place at state levels. I would therefore expect a low-key budget this time and the markets would likely discount sentiments revolving around earnings and election expectations in this period.”
Feb 01, 2022 09:44 IST
Income tax Slab, Budget 2022 LIVE Updates: Relaxation of TDS and TCS Provisions
KPMG said in its pre-budget note, “All securities (including derivatives) should be specifically excluded from the ambit of TDS /TCS provisions applicable to purchase/sale of goods.”
Feb 01, 2022 09:22 IST
Income tax Slab, Budget 2022 LIVE Updates: Increase in Exemption Limit Under Section 80C
Vivek Bansal, executive director and group CFO, InCred explained that the said Section 80 C accounts for tax savings for most individuals in India. The current limit of Rs 1.5 lakh becomes too restrictive and thus there is need to widen horizon by offering additional investment opportunities.
Feb 01, 2022 09:10 IST
Income tax Slab, Budget 2022 LIVE Updates: Home Loan Deduction to Increase?
Tax2Win said in its pre-budget note: There is a compelling reason for raising the deduction under Section 24. In the past five years, property prices across the country have risen. Even a modest 2-BHK house in a metro now costs upwards of Rs 70-80 lakh. Assuming a loan to cover 75 per cent of the value of the property, the buyer requires a loan of Rs 50-60 lakh. The deduction of Rs 2 lakh, will not be able to fully cover the interest paid on such a loan and therefore the limit needs to be hiked to at least Rs 3 lakh, regardless of the price of the property.