New Tax Rules To Understand

With a vision to establish a trustworthy tax system, Finance Minister Nirmala Sitharaman announced various reforms, which included introduction of a scheme for taxation of virtual digital assets, promoting voluntary tax compliance and reducing litigation. At the outset, many expectations of individual taxpayers in terms of reduction in tax rates or widening of slabs, increase in basic exemption limit, hike in standard deduction, hike in deduction availability for eligible investments, work from home benefits, etc. were not addressed in the Budget. However, on a positive note, there wasn’t any new tax levy or compliance requirement. Following are the key Budget highlights for personal taxes: Surcharge capped at 15 per cent on all long-term capital gains: Budget 2022 has provided a relief to investors by capping surcharge on transfer of long-term capital assets to 15 per cent. This...