Union Budget 2022: No change in Income Tax slabs, revised ITR filing window now open for 2 years from AY

The Finance Minister however gave respite to people filing their revised Income Tax Return (ITR) by expanding the tax filing window.

New Delhi: Contrary to widespread expectations from individual taxpayers, Finance Minister Nirmala Sitharaman has not announced any change in the Income Tax Slab.

The Finance Minister has however given respite to people filing their revised Income Tax Return (ITR). FM has announced that the revised tax filing window will remain open for two years from the year of assessment in case of less filing of tax.

“To provide an opportunity to correct an error, taxpayers can now file an updated return within 2 years from the relevant assessment year,” FM announcing her 4th Straight Union Budget said.

Presently, if the department finds out that some income has been missed out by the assessee, it goes through a lengthy process of adjudication. Instead, with this proposal now, there will be a trust reposed in the taxpayers that will enable the assessee herself to declare the income that she may have missed out earlier while filing her return. Full details of the proposal are given in the Finance Bill. It is an affirmative step in the direction of voluntary tax compliance, said the FM.

The FM has also proposed that any income from 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 cost of acquisition, Sitharaman said.

Among her other big announcement on the direct tax was that both Centre and States government employees' tax deduction limit to be increased from 10% to 14% to help the social security benefits of state government employees and bring them at par with the Central government employees.