Digital Desk: Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2022, advocated that the tax deduction limit for both Centre and state government employees be extended from 10% to 14% to support state government employees with their social security benefits and bring them on par with Central government employees.
“Corporate surcharge to be decreased from 12 percent to 7%. I suggest that any income derived from the transfer of any virtual digital asset be taxed at a rate of 30%. Except for the cost of purchase, no deduction in respect of any expenditure or allowance shall be allowed for computing such income.” the finance minister said.
Cooperative societies can now pay an alternative minimum tax of 18.5 percent, while businesses pay 15 percent. From now on, cooperatives will be required to pay only 15%, said the finance minister.
“To provide taxpayers a chance to fix an error, they can now file a revised return within two years of the relevant assessment year. The RBI will begin issuing digital rupees in 2022-23, utilizing blockchain and other technologies. This will have a significant positive impact on the economy.” She added
Further, announcing tax assistance for those with disabilities, the Finance Minister said, “Parents or guardians can obtain insurance from their disabled children and the payments of annuities or lump sums for crippled dependents will be excused for the rest of their lives.
“The gross GST collections for the month of January 2022 are Rs 1,40,986 crores, the highest since the start of GST. Other than borrowing, overall spending in FY23 is expected to be Rs 39.45 lakh crore, with total resources mobilization of Rs 22.84 lakh crore... The government promises a tax system that is steady and predictable. It recommends lowering the Minimum Alternative Tax on cooperatives to 15%, putting them on the level with corporations.” She informed.
Moreover, she added that the states had been given Rs 1 lakh crore to help with investment.
“An allocation of Rs 1 lakh crore has been approved for 2022-23 to assist states in catalyzing overall economic investments. These interest-free loans for 50 years are in addition to the standard borrowing limits for states. It will be used for PM Gati Shakti-related projects as well as other state-led productive capital investments.” FM said while presenting the Union Budget 2022.
