As finance minister announced the Budget yesterday, did you scroll through Netflix or did you dive deeper to understand why she made references to Mahabharta’s biggest chapter, Shanti Parva?
Shanti Parva chronicles dying Bhishma’s advice to devastated King Yudhistra on principles of managing a kingdom. “Keeping its people happy as per Shanti Parva, is one of the pillars of good governance adopted by a King”
The Budget 2022 doesn’t increase our taxes, it maintains the status quo which in turn should make us, the taxpayer happy. Few changes as listed below will affect our personal incomes
- Income from new age investments like crypto currencies taxable at 30% and subject to a tax deducted at source of 1%. Till now there was no clarity on how such income is to be taxed.
- For the sale of immovable property, buyers will have to pay tax deducted at source at 1% on the higher amount of —actual sale value or stamp duty value of such property.
- If any individual received any payment for expenses for Covid from his employer it will not be taxed as perquisite, If he or she received such payout from other individuals, such amount will not be taxed.
- If you forgot to furnish any tax related documents while filing returns, you can do so within two years from the end of the assessment year. While you wont be penalised for filing additional tax information but if tax liability arises because of additional disclosures, an additional tax will have to paid on such tax liability
- Deduction will be allowed for premium paid for Pension or Annuity plans taken for the disabled dependents even if such policies give annuity (regular income) or lumpsum payout even during the lifetime of the parent or guardian.
- Postal Savings Account deposits will be accessible digitally.
With the government getting good tax revenues from taxpayers, it has decided to spend more money on growth of various sectors of the economy, through missions such as GatiShakti Mission, affordable housing projects in bigger cities and has laid out clear policies on new technology based businesses such as drones, electric vehicles, solar power.
The immediate benefits of this budget may not be visible now, but if government manages to implement and deliver its promises, the increase in economic activity will have a Gati Shakti Effect on your Incomes as well as investments in shares or equity mutual funds (Value of shares or equity mutual funds goes up if the companies grow, show profits which in turn is partly affected by government policies.)