Budget 2022: No change in income tax slabs

In her delivery of the Union Budget, Finance Minister Nirmala Sitharaman did not mention any new tax bands for the personal income tax categories. It was widely assumed that some minor adjustments to the current income tax system would be made, but no substantial changes were proposed.

Sitharaman did, however, declare that taxpayers can now revise their I-T returns every two years.

To provide an opportunity to correct an error, taxpayers can now file an updated return within two years of the relevant assessment year, said Sitharaman.

The Finance Minister said, “Any income from the transfer of virtual digital assets will be taxed at 30 percent. The recipient must pay the tax on the gift of such assets.”

Sitharaman also said, “Tax for cooperative societies has been reduced to 15% to provide a level playing field between cooperatives and corporates. Surcharge on cooperatives reduced to 7%.”

India’s Finance Minister, Nirmala Sitharaman, unveiled her fourth budget, which aims to maintain India’s status as the world’s fastest-growing economy.

The budget was released just days before the first round of voting in Uttar Pradesh, which will be joined by four other states in electing a new state administration.

The Indian economy is expected to grow by 9.2 percent in the fiscal year that ends in March, after contracting by 7.3 percent in the previous fiscal year.

Rates of Income Taxation Under the New Regime

  • Up to Rs.2.5 lakh – Nil
  • Above Rs.2.50 – Rs.5 lakh – 5% of the total income that is more than Rs.2.5 lakh
  • Above Rs.5 lakh – Rs.7.50 lakh – 10% of the total income that is more than Rs.5 lakh + Rs.12,500
  • Above Rs.7.50 lakh – Rs.10 lakh – 15% of the total income that is more than Rs.7.5 lakh + Rs.37,500
  • Above Rs.10 lakh – Rs.12.50 lakh – 20% of the total income that is more than Rs.10 lakh + Rs.75,000
  • Above Rs.12.50 – Rs.15 lakh – 25% of the total income that is more than Rs.12.5 lakh + Rs.1,25,000
  • Above Rs.15 lakh – 30% of the total income that is more than Rs.15 lakh + Rs.1,87,500