This year’s budget has not introduced any major changes but there are a few changes that we have to look out for and we will be looking at a few of those here.
The Budget 2020 introduces a new regime under section 115BAC giving individuals and HUF taxpayers an option to pay income tax at lower rates. The new system is applicable for income earned from 1 April 2020 (FY 2020-21), which relates to AY 2021-22.
In her Budget 2022, Finance Minister Nirmala Sitharaman did not mention any changes to tax slabs or rates. The diligent salaried taxpayer’s high hopes have been dashed. As a result, if the income tax rates and slabs remain unchanged, an individual taxpayer will continue to pay the same tax rates regardless of the tax regime adopted for FY 2022-23. If we talk about tax planning, Right Horizons are well updated with the new taxation slabs and can help you in your tax exemptions.
Talking about crypto currency and its taxations, which has also raised a little debate in the market after the budget. Many people have breathed a sigh of relief after hearing something from the authorities on crypto. Trading and transacting in crypto-currencies, NFTs, and other digital assets is now formally legal. Taxation, on the other hand, is a source of concern. Cryptos have been declared as a virtual or digital asset, and will be taxed at 30% on income arising from such transfers, with no deductions or allowances except the cost of acquisition. Losses from such transfers will also not be allowed to be set off against any other income under any head, and gifts of digital assets will be taxable in the hands of the recipient, with a 1% TDS. To summarize, whatever you do with cryptocurrency, you must pay a piece of it.
Surcharge on long-term capital gains on any asset is restricted at 15%, which essentially implies that the surcharge cannot exceed 15% of the total net tax liability. Similar to income tax and surcharge, health and education cess will not be allowed as a business expense.
Now coming on to the government employees, state government employees can guarantee exclusion of NPS at 14% of manager’s commitment which earlier was just 10%. The custom obligation on cleaned jewels and gemstones are decreased by 5%. This essentially implies soon the costs of a similar will be a lot of lower. There is likewise an obligation concession on import of parts of telephone chargers, transformers, calfskin, bundling boxes, and so forth which additionally thus will diminish the costs of these products. While the costs of Umbrellas will increment as the obligation on umbrellas has been expanded by 20%.
Non-residentials getting Income from seaward subordinate instruments or subsidiaries gave by an offshore banking unit, pay from sovereignty and premium because of rent of the boat, and pay got from portfolio the executives administrations in IFSC will be absolved from charge.
These are the amazing presentations by the finance ministry in the current year’s financial plan, the market during the spending plan responded reasonably decidedly shutting in sure of +1.31%. Hopefully that the ricochet back proceeds and markets rise much higher.
The financial budget had more accentuation on the long future that is in front of us. It has additionally presented a battery trading strategy, for setting up EV stations. Movement, special visualizations, gaming and funnies area offers gigantic potential to utilize youth.
About Tax Planner:
Timely tax planning helps to avoid many costly financial mistakes which cannot be undone. Right Horizons helps you for your tax planning and make sure that you can get as much benefit as possible but however if you are a bit late in planning your taxes, you can take some simple last minute financial steps by consulting us. Our these steps will help you minimize your risk and will ensure that your investments are aligned with your financial requirements.