What Budget 2022 holds for the individual taxpayer and the investor

business-standard.com:

Individual taxpayers were hopeful that the finance minister (FM) would provide some tax relief by changing the tax slabs or offering higher deduction under Section 80C, 80D, or Section 24. None of those hopes materialised. However, there was some relief for taxpayers who make a mistake in filing income-tax. Investors in cryptos will also breathe easy. Now that the FM has clarified how cryptos will be taxed, the fear that these digital assets could be banned will no longer be there. State government employees also stand to gain by enjoying higher deduction on their employer’s contribution.

Updated tax return

The Income-Tax Department will introduce a new updated return. This tax return will help those taxpayers who may realise they have committed omissions or mistakes in estimating their income-tax payment. They will get an opportunity to correct such errors by paying additional tax. This updated return can be filed within two years from the end of the relevant assessment year. This will help simplify the tax system, promote voluntary compliance by taxpayers, and reduce litigation.

Capping of LTCG

The FM announced the capping of the surcharge on the long-term capital gains (LTCG) payable on financial assets at 15 percent. This proposal will benefit taxpayers in high income tax slabs as well to investors in equity shares of start-ups. Earlier the surcharge on LTCG was capped at 15 percent in case of listed stocks and equity mutual fund. Now the same gets extended to all financial assets.

Clarity on taxation of cryptos

Those investing in virtual digital assets finally have clarity on their taxation. The FM has proposed that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent. No