Budget 2022: Nirmala Sitharaman did not succumb to ‘feel-good’ factor

-

In the round-up to the Budget, there was a general perception that there could be populist measures like rejig of tax slabs, increase in the standard deduction, etc. to provide a feel-good factor. However, it’s very heartening to note that the finance minister in the Budget placed before the Parliament on 1 February succumbed to no such temptation and on the contrary, her proposals were much forward-looking.

The major amendments with respect to individual taxation are discussed:

Filing of updated return of income

With an objective of voluntary compliance, it is proposed that an individual can file an updated return of income (even if an original or amended return of income is not filed) to offer additional income and pay the tax (and interest) due on it along with additional tax as prescribed.  Such voluntary updation of return can be done any time within twenty-four months from the end of the relevant assessment year. Conditions have been stipulated when such voluntary updation cannot be done like when any assessment/reassessment for that year is pending, etc.

Virtual digital assets

In recent times, there has been a lot of discussion on cryptocurrencies and India’s position on the same. The budget reinforces a few overarching steps on this behalf. India will have its own central bank digital currency, a digital rupee based on blockchain technologies to be issued by the Reserve Bank of India (RBI) in 2022-23. Accordingly, a definition of a virtual digital asset is sought to be introduced in the Indian Income-tax Act, 1961 (Act). The gains from the sale of such assets are going to be taxable at a rate of 30 percent.

It is also proposed that no deduction would be allowed towards the expenses (other than the cost of acquisition of such assets) and the loss, if any, would not be allowed to be set off against any other income. To ensure that such gains/ losses are appropriately reported in the return of income, it is also proposed that the payer shall deduct tax at the rate of 1 percent of the sum to be paid. Another important aspect is that in the case of gifting of such virtual digital assets, the recipient will be subject to tax.

Payment in relation to COVID

Any sum paid by the employer to the employee or by any person to any individual in respect of the expenditure incurred towards his/ her medical expenditure or towards family members for treatment of COVID  shall not be considered as a taxable income, subject to the conditions as may be laid down. Any monetary consideration received by a member of the family of a deceased person from the employer of deceased person or in case of receipt from any other person/ persons (up to an aggregate of not exceeding Rs 10 lakh in the later), within 12 months of the date of such death, shall not be considered as taxable income.

Rationalisation of surcharge

Surcharge applicable on Long Term Capital Gain (LTCG) on sale of listed equity shares and equity oriented mutual funds stands capped at a maximum of 15 percent, whereas there was no cap on other LTCGs. It is now proposed to cap the maximum surcharge at 15 percent on all types of LTCGs.

Tax relief to persons with disability

As per the existing provisions, an individual/ HUF is eligible for a deduction in respect of a) expenditure for the medical treatment, training, and rehabilitation of a dependent, being a person with a disability; or b) the amount paid to LIC or any other insurer for the maintenance of a disabled dependent. The aforesaid deduction is allowed only if the lumpsum payment/ annuity is available to the differently-abled person on the death of the parent or guardian. It is now proposed to allow the deduction even if the lump sum/ annuity payment is received during the lifetime, i.e., upon attaining the age of sixty years or more of the individual or the member of the HUF in whose name subscription to the scheme has been made.

These are some of the measures which have been introduced in the Budget which addresses very topical issues and makes this Budget forward-looking.

The writer is Tax Partner, EY. Views are personal.

Read all the Latest News, Trending News, Cricket News, Bollywood News,
India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.



from Firstpost India Latest News https://ift.tt/Aend5YUwG
Shuddhasattwa Ghosh

Comments

Post a Comment

Popular posts from this blog

Both COVID-19 vaccine doses needed for good protection against B16172 variant

-
It’s been a concerning few weeks in the UK, with the B16172 variant first taking hold and then spreading to become dominant. This more infectious form of the virus, initially identified in India, is what we’re now going to have to live with – unless it is out-competed by another variant in the future. Worryingly, experts had predicted that B16172 might be able to escape some of the effects of vaccines, which if true would threaten to derail the UK’s plans to finish lifting restrictions from the end of June. However, Public Health England (PHE) has looked at the ability of various variants to evade immunity and says that the UK’s vaccines remain effective against the variants circulating, including B16172. On the surface, this looks like good news. But delve a bit deeper, and things get more complicated, says Paul Hunter, professor of medicine at the University of East Anglia. PHE’s research found a little drop-off in protection against B16172 among people who were fully vaccinated.
Read more

New coronavirus variant emerge in India: How should our COVID response change?

-
Image
After genome sequencing of over 10,000 COVID-19 cases in India, researchers have discovered a new variant with two new mutations which may be better at evading the immune system. In 15-20 percent of samples from the Indian state of Maharashtra (the state accounting for 62 percent of cases in the country) a new, double mutation in key areas of the virus has been detected. These are now known as the E484Q and L452R mutations. What makes the variant different? Both these mutations are concerning because they are located in a key portion of the virus – the spike protein – that it uses to penetrate human cells. Spike proteins attach via a “receptor binding domain”, meaning the virus can attach to receptors in our cells. These new mutations include changes to the spike protein that make it a “better fit” for human cells. This means the virus can gain entry more easily and multiply faster. Given what we have seen with other similar mutations , it might also make it harder for our immu
Read more

Aditya L1 Mission: Spacecraft is nearing its final phase, says ISRO chief

-
Aditya L1 spacecraft is nearing its final phase, and manoeuvres to enter the L1 point are expected to be completed by January 7, 2024, according to ISRO Chairman S Somanath. “Aditya is on the way. I think it has reached almost its final phase,” the ISRO chief told PTI on the sidelines of an event organised at VSSC to commemorate the 60th year of the First Sounding Rocket Launch. Aditya L1, India’s first space-based mission to study the Sun, was successfully launched on September 2 from the Satish Dhawan Space Centre (SDSC) in Sriharikota. The spacecraft, after travelling about 1.5 million km from Earth over 125 days, is expected to be placed in a Halo orbit around the Lagrangian point L1, considered closest to the Sun. He said that the last preparations for the spacecraft’s entry into the L1 point are currently underway incrementally.”Possibly by January 7th, the final manoeuvres will be done for entering into the L1 point,” Somanath added. Among other tasks, it will capture and tr
Read more