In her Union Budget speech today, on February 2, Finance Minister Nirmala Sitharaman announced that there will be no changes in the personal income tax collection slabs and the previous tax regime from the 2021-22 fiscal will continue.

Sitharaman, however, proposed that both Centre and state governments’ employees’ tax deduction limit should be increased from 10 per cent to 14 per cent. The move, she said, will help the social security benefits of state government employees and bring them on the same level with the Central government employees.

The Finance Minister also proposed a reduction in corporate surcharge and said that the transfer of any virtual digital asset shall be taxed at the rate of 30 per cent.

Also Read: Budget 2022: Digital university to be set up; focus on developing e-content and digital teachers, said FM Sitharaman

“Corporate surcharge to be reduced from 12 per cent to seven per cent. I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except the cost of acquisition,” she said in her speech.

Sitharaman also stated that the revenue raised under the goods and services tax (GST) has been on the rise despite the exigencies arising out of the COVID19 pandemic.

Also Read: Union Budget 2022: FM Sitharaman announces tele-mental health programme; 2 lakh anganwadis to be upgraded

 “The gross GST collections for the month of January 2022 are Rs 1,40,986 crore which is the highest since the inception of GST,” she said.

“There are still some challenges remaining and we aspire to meet them in the coming year. The right balance between facilitation and enforcement has engendered significantly better compliance. GST revenues are buoyant despite the pandemic. Taxpayers deserve applause for this growth. Not only did they adapt to the changes but enthusiastically contributed to the cause by paying taxes,” Sitharaman added.

Also Read: Budget 2022: Focus on organic and natural farming; 2023 as the year of millets, increase oilseeds production

The Finance Minister also announced tax relief for persons with disabilities. The parents or guardian can take insurance from their children with disabilities, she announced. The payment of annuity or lump sum for disabled dependent will be exempted during the lifetime, she added.