New Delhi: Union Finance Minister Nirmala Sitharaman presented the budget for the financial year on April 1. Although this time there has been no change in the tax slab, but the things used by the common people have been made cheaper.
The Finance Minister said that this budget will stimulate economic growth in the midst of the Kovid-19 crisis.
no tax relief
Finance Minister sitharaman No change in income tax rates and slabs has been proposed in the budget for the financial year. The minister also did not increase the standard deduction, which was widely anticipated given the high level of inflation and the impact of the pandemic on the middle class.
The standard deduction is currently ₹50,000.
The corporate tax rate was also kept at the same level. However, the concessional rate of 15 per cent has been extended for one year for new corporate entities.
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Tax deduction increased in NPS for state government employees
The Finance Minister today said that the government has proposed to increase the tax deduction on the contribution made by the state government to NPS (National Pension System) employees from 10% to 14%. At present, only central government employees are eligible to claim tax benefit of 14% for employer’s contribution to the employee’s NPS account. The tax benefit is limited to 10% in case of private sector employees.
60 lakh jobs created
Presenting the budget for 2022, Finance Minister Sitharaman said that the next target of the government is to create 60 lakh jobs. “PM Gati Shakti will propel the economy and create more jobs and opportunities for the youth,” he made the announcement.
He said that the Center is focused on empowering the youth, women and the poor in the country. “The Production Linked Incentive (PLI) scheme has received an excellent response to achieve a self-reliant India, with a potential of 60 lakh new jobs and 30 lakh crore additional generation during the next keycap issue five years,” he said.
Import duty on diamonds, gems
Sitharaman has announced a 5% reduction in import duty on cut and polished diamonds and gems to give a boost to the sector. Currently, the import duty on cut and polished diamonds as well as gems is 7.5%.
Tax on crypto income
The government announced plans to introduce a digital currency and tax cryptocurrencies as the country keeps pace with the global move towards virtual financial instruments. Finance Minister Sitharaman said in her budget speech today that income from transfer of any virtual asset will be taxed at 30%.
400 new Vande Bharat trains to be launched
The Union Finance Minister has proposed to start 400 new Vande Bharat trains and said that tenders for multi-modal parks at four locations will be awarded in the next financial year. He also said that a rational plan would be brought in to increase domestic oilseeds production to cut down on imports.
Sitharaman said a national tele-mental health program for mental health counseling would be launched. IIT Bangalore will provide technical support for the programme. He also said that an open platform would be created for a national digital health ecosystem.
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first published:Feb. 1, 2022, 2:40 p.m.