Finance Minister Nirmala Sitharaman has given some concessions related to income tax in the budget 2022, which will affect the pocket of the common man. These reliefs include ITR and other facilities. These concessions will come into effect from 1 April 2022.
No special announcement was made for the taxpayer in Budget 2022. It was expected that there might be some change in the income tax slab. Relief may be available in the form of standard deduction. but that did not happen. Although Finance Minister Nirmala Sitharaman has given some concessions related to income tax in the budget 2022, it will affect the pocket of the common man. According to tax expert Balwant Jain, these reliefs include ITR and other facilities. These concessions will come into effect from 1 April 2022.
Relief in ITR
If you have made a mistake or mistake in assessing the income correctly in ITR, then now the Income Tax Department will give an opportunity to rectify such mistakes. For this, the taxpayer will get an opportunity to file Revised ITR by paying additional tax. This ITR can be filed within two years from the end of the assessment year.
What is the order now
According to Finance Minister Nirmala Sitharaman, if Income Tax finds that the taxpayer has not disclosed some income in ITR, then there is a long case against him. But now taxpayers will be given a chance to rectify the mistake in ITR.
Relief to Co-operative Societies
Co-operative societies pay tax at the rate of eighteen and a half percent. Whereas companies pay at the rate of 15 percent. This time in the budget, equality has been brought between cooperative societies and companies. Co-operative societies will also now be able to pay tax at the rate of 15 percent. A proposal has been made in the budget this time to reduce the rate of surcharge for cooperative societies to 7 percent from the existing 12 percent. These will be those societies whose total income is from Rs 1 crore to Rs 10 crore.
Gift to the parents of the handicapped
Under the existing law, a parent or guardian gets the benefit of tax exemption only when the parent or guardian of the disabled person has died or on attaining the age of 60 years. There may be circumstances when the disabled dependents need to pay premium or lump sum amount even during the survival of their parents/guardians. Therefore, this time in the budget, it has been proposed to allow payment of premium and lump sum amount if the parents/guardians were alive till they attain 60 years of age.
State employees’ benefits
The central government contributes 14 percent of the salary of its employees in the National Pension System (NPS) Tier-I. But in the case of State employees such deduction is allowed only to the extent of 10 per cent of the salary. Now state government employees have also been proposed to increase the tax deduction limit on employer’s contribution to NPS account from 10 per cent to 14 per cent.
