Union Budget 2022: No change in income tax slabs
Budget 2022-23: Putting the expectation of the salaried class taxpayers to rest, Union Finance Minister Nirmala Sitharaman on Tuesday announced that there will be no changes to income tax slabs.
The income tax rates for 2022-23 were also not revised, said the Finance Minister as she presented the budget for this year in Lok Sabha.
The news may come as a disappointment to people who had hoped that the government will increase the income tax slab since, in recent years, the income tax limit has not been increased.
Sitharaman began the second half of her Budget 2022 statement by quoting a Mahabharata verse regarding direct taxes.
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“The king must collect taxes in accordance with dharma,” the Finance Minister stated, quoting from Shanti Parva of the Mahabharata.
Meanwhile, a new updated return system has been proposed, allowing people to file updated returns within two years of the filed IT Return.
The minimum alternate tax (MAT) for cooperatives was also reduced from 18.5 percent to 15 percent by Finance Minister. Existing tax benefits for startups who have redeemed taxes for three years in a row have been extended for another year.
At present, those with an annual taxable income of up to Rs 2.5 lakh are exempted from paying income tax while those under Rs 5 lakh get a complete rebate. Tax brackets are 10% for those earning between Rs 2.5 and Rs 5 lakh, 20% for those earning between Rs 5 and Rs 10 lakh, and 30% for those earning more than Rs 10 lakh.
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-PTC News
