Finance minister Nirmala Sitharaman fixed the fiscal deficit at 6.4% of gross domestic product (GDP) as budget<\/a> 2022 recognized the need to boost growth.<\/p>\n Finance Minister Nirmala Sitharaman began her Budget speech by voicing empathy for those who suffered during the COVID-19 pandemic.<\/p>\n Nirmala Sitharaman announces income tax slabs, rates 2022, no change in personal income tax slabs and rates.\u00a0 \u00a0She makes big announcements on affordable housing.<\/p>\n The finance minister indicated that tax deduction will be allowed on employer\u2019s contribution up to 14% for state government employees. For taxpayers, the FM said they will be able to file updated ITR for two years from the relevant assessment year in case they miss to report an income.<\/p>\n The Finance Minister also said in Budget Speech 2022 that this year all Post Offices in the country will be brought on the core banking system customers. With this, Post Office account holders will be able to make online transactions and even transfer money to other bank accounts through net banking.<\/p>\n Ahead of the Budget, taxpayers were expecting the announcement of changes in Income Tax Slabs and Rates. Some experts believed that big bang tax relief may not be announced in Budget 2022. However, Economic Survey 2021-22 tabled in the Parliament on Monday (January 31, 2022) raised hope for bigger tax reliefs for all types of taxpayers, including salaried individuals, senior citizens, NRIs, and pensioners.<\/p>\n The Economic Survey has listed several relief measures for taxpayers the Government has taken since the outbreak of the COVID-19 pandemic. Now that the economy is looking set to grow fast, one can hope the Government will improve upon last year\u2019s tax-related announcements.<\/p>\n Finance Minister Nirmala Sitharaman<\/a> was also expected to announce rules for the taxation of income from cryptocurrencies.<\/p>\n The Income Tax slabs had not been raised in a meaningful manner over the years and are not linked to inflation unlike in the case of taxation of gains from certain asset classes. As a result, over the years salaried individual\u2019s net income and hence the purchasing power had reduced despite the cost of living has gone up significantly.<\/p>\n Experts expected that return filing should also be simplified for individuals whose salaries fall below this threshold. The Government had sought to reduce the tax burden on an individual taxpayer by introducing a new tax scheme without exemptions and with lower tax rates. However, data shows that it has not become popular and the salaried individuals are still choosing the earlier scheme because that is leading to lower taxes in most cases. Read Share Market Live Updates Here<\/p>\n ‘Some relief to individuals with income above Rs 2 crore’\u00a0 \u201cThe ongoing pandemic, coupled with the rising inflation, has adversely affected the household expenses of the common man for an elongated period now. However, with the higher capex and fiscal deficit target the Finance Minister has limited specific relief to individual taxpayers,\u201d says Parizad Sirwalla, Partner and Head, Global Mobility Services, Tax, KPMG in India.<\/p>\n \u201cTo provide impetus to trust-based governance as a concept, an updated tax return system has been introduced wherein a taxpayer can file a tax return upon payment of specified taxes within 2 years from the end of the relevant assessment year. Interestingly, some relief to individuals with income above 2 crores in the form of capping of surcharge at the rate of 15 percent on long-term capital gains (on specified assets) from existing graduated rates. It would be relevant to analyze the fine print of the finance bill for other announcements and tax sops if any on the personal tax front,\u201d he adds.<\/p>\n The Prime Minister said, “This year’s Budget a ‘game changer’, focuses on jobs, infra & growth.”<\/p>\n He also said, “This budget brings in new hopes and opportunities for the people. It strengthens the economy; it’s full of ‘more infrastructure, more investment, more growth and more jobs’. There is also a new provision of green jobs; budget ensures a bright future for youth.”<\/p>\n I will speak in detail on the Budget at 11 am tomorrow: PM Modi<\/p>\n During COVID, we had taken several decisions to support and help MSMEs. Credit guarantee has been increased to a new record and several new initiatives have been announced in this Budget: PM<\/p>\n Budget has provisions to make farming profitable: PM Modi<\/p>\n I congratulate Finance Minister Nirmala Sitharaman for this ‘People Friendly and Progressive budget’: PM Modi<\/p>\n Congress said, “Since 2014, the total debt of the GoI has nearly tripled. Modinomics has proven disastrous, increasing tremendously the debt burden on our nation.”<\/p>\n Since 2014, the total debt of the GoI has nearly tripled. Modinomics has proven disastrous, increasing tremendously the debt burden on our nation. pic.twitter.com\/QsEDV2udJ0<\/a><\/p>\n — Congress (@INCIndia) February 1, 2022<\/a><\/p><\/blockquote>\nThe Budget<\/h3>\n
Compliments For the Budget<\/h3>\n
Criticism Raised On the Budget<\/h3>\n
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