DISHEARTNING BUDGET FOR SALARIED PERSONS BUT ROADMAP FOR FUTURE OF COUNTRY

Budget for the year 2022 was presented by Hon’ble Finance Minister Smt. Nirmala Sitaraman which has not fulfilled expectations of salaried persons . The budget is technology driven which mainly focuses on infrastructural development. The key takeaways of budget are-   

UPDATES FOR SALARIED PERSONS-

1. No change in personal direct tax slab.

2. No increase in Standard deduction for salaried persons.

3. Deduction under NPS -At present Central Govt. contributes 14% of salary to its employee to NPS which is allowed as deduction to Central Govt. Employees. The deduction in case of State Govt. employees was allowed to the extent of 10% of salary which has been to increased to 14% in parity with Central Govt. employees.

4. Income tax return can be updated within 2 years from the end of relevant A.Y.

OTHER INCOME-TAX UPDATES-

5. Digital Currency will be issued by RBI in 2022-23.

6. AMT rates for Co-operative Society reduced from 18.5% to 15%.

7. Surcharge has been reduced from 15% to 7% for Co-operative society with income of 1cr to 10Cr.

8. 30% tax on transfer of Virtual Digital Assets. No expenses will be allowed except cost of acquisition.

10. No further appeal in case of identical question of law pending with high Court/ Supreme Court

11. SEZ Act will be replaced with new Act.

12. Incentives for startups have been increased to 1 more year.

13. Concessional tax regime of 15% was introduced for newly incorporated domestic manufacturing companies who commence manufacturing activity by 2023 which is further increased to 1 more year till 31/03/2024.

14. Surcharge on LTCG on any type of asset is capped at 15%.

15. Brought forward losses cannot be set off against unclosed income traced during search and Survey Operation.

UPDATES IN INDIRECT TAX-

1. Time-limit to avail ITC u/s 16(4) extended till 30th November of next year from 30th September.

2. Additional Condition for availment of ITC u/s 16(2)- ITC can be availed only if the same is not restricted in GSTR-2B.

3. Composition Tax Payer’s Registration can be cancelled suo-moto if they have not filed their GSTR-4 return beyond 3 months from the due date.

4. Credit Notes in respect of supply made in a financial year can be issued by 30th November of next financial year (currently allowed till 30th September)

5. Any rectification of error in GSTR-1/ GSTR-3B is now permitted till 30th November of next financial year (currently allowed till 30th September).

Changes In Budget 2022 For Salaried Person

6. The two-way communication process in filing GST returns is scrapped.

7. The due date for filing return by non-resident taxable person is prescribed as 13th day of next month

8. Section 41 of the CGST Act is being substituted so as to do away with the concept of “claim” of ITC on a “provisional” basis.

9. Section 47 of the CGST Act is being amended so as to provide for levy of late fee for delayed filing of TCS returns.

10. Section 49 of the CGST Act is being amended so as to provide for restrictions for utilizing the amount available in the electronic credit ledger.

11. Section 49 of the CGST Act is being amended so as to allow transfer of amount available in E- cash ledger of a registered person to the E- cash ledger of a distinct person;

12. Section 49 of the CGST Act is being amended so as to provide for prescribing the maximum proportion of output tax liability which may be discharged through the electronic credit ledger

13. Section 50(3) of the CGST Act is being substituted retrospectively, with effect from the 1st July, 2017, so as to provide for levy of interest on input tax credit wrongly availed and utilized. (Meaning thereby Interest will not be levied if ITC is not utilized)

14. Refund claim of any balance in the electronic cash ledger shall be made available.

15. Rate of Interest u/s 50(3) prescribed as 18% in all cases.

Our Opinion-

It is basically Investment driven budget which focuses on long term development of our Country. It is not a budget of one year but this budget has laid down base for development of economy for coming years. Though this budget has not provided any relief to salaried persons but this budget has huge capacity to generate employment opportunities.

*****

The above comments do not constitute professional advice. The Author can be reached at [email protected] or visit website www.financialtreecompany.com. My name is CA Divya Agrawal and I am Practising Chartered Accountant, CEO and Founder of FINANCIAL TREE COMPANY (An online return filing and Tax Consultancy Company). We also upload educational videos in You tube and name of our channel is FINANCIAL TREE COMPANY. Our aim is to help people in improving their financial health by spreading knowledge and love. Stay Financially Fit and Healthy.

Author Bio

Qualification: CA in Practice
Company: www.financialtreecompany.com
Location: Bhilai, Chhattisgarh, IN
Member Since: 30 May 2019 | Total Posts: 40
FOUNDER AND CEO OF FINANCIAL TREE COMPANY website-www.financialtreecompany.com Contact No. 9111872247 Email ID- [email protected] (AN ONLINE RETURN FILING AND TAX CONSULTANCY COMPANY) View Full Profile

My Published Posts

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Telegram

taxguru on telegram GROUP LINK

Review us on Google

More Under Income Tax

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

June 2022
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
27282930