On 1 February 2022, the Union Budget was presented by Finance Minister Nirmala Sitharaman. It is understandable if the points made sounded foreign at first – we’ve been there. But many aspects of the budget impact the common person directly, rendering it important for us to break it down, and explain how it will translate to our daily lives.
And so, here are the highlights of the 2022 Budget that will play a key role in your personal finance.
I. Income Tax
There will be no change in personal income tax slabs.
II. Income Tax Returns Correction
Income tax returns errors are common, and to give taxpayers the opportunity to correct them, there will now be a one-time window to correct and update the returns within two years from the relevant assessment years.
III. Digital Assets
Income from digital assets such as NFTs and cryptocurrency will be taxed at 30 per cent. Cryptocurrencies as gifts will be taxed at the receiver’s end.
IV. Digital Rupee
The Reserve Bank of India (RBI) will issue a digital rupee, Central Bank Digital Currency (CBDC) using blockchain technology by 2022-23.
From the beginning of next year, e-passports with embedded chips will be available to the public. These will have security, biometric, and radio-frequency identification features, and will be issued based on international standards.
VI. Job Creation
The government’s aim is to create 60 lakh jobs, focusing on the empowerment of women, the youth, and the poor, under the PM Gati Shakti scheme.
VI. Mental Health Program
A Tele-Mental Health program will be launched, keeping in mind the effects of the pandemic. This includes 23 centres with NIMHANS as the nodal centre, and IIIT Bangalore providing technology support.
VII. Tax Benefits
For startups, the tax benefits that existed for three consecutive years, have been increased by one year.
VIII. Welcoming 5G
A spectrum auction (where the government auctions off the rights to transmit the signal) will be held in 2022.
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