Finance Minister Nirmala Sitharaman in her Budget speech for the financial year 2022-2023 did not propose any change in income tax rates or slabs as was anticipated. This means that the income tax rare for FY23 has been kept unchanged by the government.
However, Sitharaman announced new updated returns rules. Taxpayers can now file an updated return within 2 years of the filed IT return of an assessment year. Taxpayers can, in this manner, file returns that they might have missed earlier.
"To provide an opportunity to correct an error, taxpayers can now file an updated return within 2 years from the relevant assessment year" said FM Sitharaman.
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However, relief was provided for people with disabilities. FM said that parents/ guardian can take insurance. Annuity and lumpsum received to parents or guardians attaining 60 years during lifetime of the disabled person, eligible for tax relief.
Moreover, government has proposed to increase tax deduction from 10 per cent to 14 per cent on contribution in NPS by state govts to employees, FM added.
Sitharaman also shed some light on tax liabilities for virtual assets like cryptocurrencies and said that income from any digital asset will be taxed at 30 per cent.