Nirmala Sitharaman the Finance Minister in the Budget proposed that both Centre and states govt employees’ tax deduction limit should be increased from 10% to 14% to help the social security benefits of state govt employees and bring them at par with the Central govt employees.
She added, “Corporate surcharge to be reduced from 12% to 7%. I propose to provide that any income from the transfer of any virtual digital asset shall be taxed at the rate of 30%. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except the cost of acquisition.”
Sitharaman said that cooperative societies can now pay 18.5% alternate minimum tax and companies pay 15%. From now, cooperative too will have to pay only 15%.
She added, “To provide an opportunity to correct an error, taxpayers can now file an updated return within 2 years from the relevant assessment year…Digital rupee to be issued using blockchain and other technologies; to be issued by RBI starting 2022-23. This will give a big boost to the economy.”
The Finance Minister also announced tax relief for persons with disabilities. The parents or guardians can take insurance from their children with disabilities, she said.
The payment of the annuity or lump sum for the disabled dependents will be exempted during the lifetime, she added.
