New Delhi: Finance Minister Nirmala Sitharaman has unveiled a bigger Rs 39.45 lakh crore Budget, with higher spending infrastructure with a view to turnaround the economy that has been grappling with the Covid-19 pandemic.
Although the Finance Minister Nirmala Sitharaman made no major announcement regarding the Income Tax slabs, she did propose to hike Tax deduction limit on employer’s contribution to the NPS account of State government employees from 10 percent to 14 percent. Announcing Parity between employees of State and Central government, FM Sitharaman said, at present, the Central Government contributes 14 percent of the salary of its employee to the National Pension System (NPS) Tier-I. This is allowed as a deduction in computing the income of the employee. However, such deduction is allowed only to the extent of 10 percent of the salary in case of employees of the State government.
Another major announcement that impacts the individual income tax filers is the extension of revised ITR filing window.
The FM has proposed to permit taxpayers to file an updated return on payment of additional tax within two years from the end of the relevant assessment year. This would give the taxpayers an opportunity to correct any omissions or mistakes in correctly estimating their income for tax payment.
Vivek Sharma, Senior Domain Specialist, Dun & Bradstreet India in an exclusive interview with Reema Sharma of Zee Media, shared his views and explained how these two major announcements would impact the common man. Watch the interview below:
Vivek Sharma has also applauded the Budget for being a holistic one. He said that sometimes you need to have a vision for the future generation, which was reflected in the Budget 2022.
“The Finance Minister has presented a people-friendly Budget and has not resorted to mere populism, and I think this is the need of the hour,” asserted Sharma.
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