Summarizing Union Budget 2022 in the terms of Personal Finance
What is there for common taxpayers in this Union Budget 2022–23
“ This budget has largely failed to excite the common taxpayers imagination. there we huge expectation of tax relief considering the impact of Pandemic , which has been completely ignored in this budget. Is there anything hidden well we will know this when the Budget will be available publicly to read between the lines ”
For Common Tax Payers:
- Overall it is a dull budget as there is no mention of standard tax deduction which was at the top of the mind of a common taxpayer. Given the global impact of the pandemic, expectations were high and our FM has failed in that front by not giving relief whatsoever.
Taxing Digital Asset:
- There is mixed feeling around taxing digital assets as on one side government has declared to tax flat 30 % on whatever profit one will generate on transacting digital assets like Crypto but has denied setting off any loss against the same asset which can also be on the higher side for retail investors considering the market volatility.
Is Crypto A Legal Asset?
- Yes the fear among crypto investors has subdued to some extent as now crypto can be treated as an asset that will be taxed, but that doesn’t mean they have legalized and regulated it. On the flip side, this move of taxing flat 30 % is a kind of signal that government doesn’t want to encourage crypto investment and are more interested in promoting their CBDC(Digital Rupee)
For Investor : (Invested in In stocks )
- Government has declared to reduce the LTCG(long-term capital gain )surcharge from 37 % to 15 %, on stocks. It is a kind of relief to the investor's pocket, but they have also hinted that this surcharge can be 37 % for some other assets.
Return Filing :
- Government has given the flexibility to taxpayers to file updated tax returns in case they have missed declaring any taxable component, within the time span of 2 years from the end of the given assessment years. It is a welcoming move.
In a nutshell :
This budget has not done anything to put extra bucks into the pocket of common man , who are struggling big time with rising inflation, health uncertainties and decreasing income