Following are the Key Highlights of the Union Budget 2022 launched on 01st February, 2022 by the Honourable Finance Minister of India, Smt. Nirmala Sitharaman:
No change in Income Tax Slab Rates for the Assessment Year 2023-24 (i.e. Financial Year 2022-23)
Income from the transfer of virtual digital asset shall be taxes at 30% and deduction of expenses shall not be allowed.
Gift of Virtual Digital Assets to be taxed to the receiver of such VDA’s.
Tax exemption to start-ups extended to March 2023.
StartUps get one year of tax incentives till March 31, 2023.
New provision to file updated return within 2 years of relevant assessment year has been introduced wherein incomes that might have been missed out earlier, can be declared.
Tax Deduction limit for State Govt employees to NPS raised from 10% to 14%.
Surcharge on Corporate tax reduced from 12% to 7%.
Surcharge on long term capital gain (LTCG) capped at 15%.
No benefit of set-off of loss allowable on income discovered during search and seizure.
Surcharge or cess not to be allowed as business expenditure.
Tax rates for co-operative societies slashed to 15%.
Alternate Minimum Tax (AMT) for cooperative societies reduced from 18.5% to 15%