Even though there was no announcement regarding changes in the income tax slab for Union Budget 2022, the government came up with various new tax rules. Whether it is for investment purposes or filing taxes, every taxpayer should be familiar with income tax changes in Budget 2022.
This article will cover the various changes in tax relief, indirect and direct tax, besides taxation in different industries.
The government hopes that this new provision will help reduce tax litigation and promote voluntary tax filing. It will allow assesses to declare income that they missed in the previous year.
Also Read: Section 32 Of The Income Tax Act
Also Read: Section 92E Of The Income Tax Act
Changes regarding the income tax rules can be confusing for taxpayers. That said, it is vital that one looks through the income tax changes in Budget 2022 mentioned in the article above. This knowledge saves you the trouble of hiring a chartered accountant and allows you to fulfil your social duty of obeying income tax laws.
Ans: In simple terms, financial year is the year in which taxpayers earn their income. Meanwhile, assessment year is the year following the financial year, in which assessment of one’s income takes place. Thus, if FY is 2022-23, then AY will be 2023-24.
Ans: Governments across the globe impose an excise tax on certain goods considered harmful to individuals and society at large. Thus, one incurs sin tax on products like alcohol, tobacco, soft drinks, coffee, fast food, etc.
Ans: The term ‘digital assets’ refers to a broad category of things that exist in a digital format held on a storage drive or computer system. They come with a right to use. Digital materials that do not offer this right are not digital assets. Some examples of digital assets are photos, videos, PDFs, cryptocurrencies, and animations.
Ans: In September 2014, the Central Government launched the ‘Make in India’ initiative to make India self-reliant. It is part of a nation-building initiative that provides incentives to individuals and entities to manufacture, assemble, and develop products in India.
Ans: Every year the Finance Minister gives a Union Budget speech at the Parliament. This speech is in two parts. Part A is about the economic conditions of previous and current years and budget estimates for the financial year. On the other hand, Part B talks about the government’s various tax proposals that directly affect an individual’s finances.
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