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Image Source : PTI

Union Finance Minister Nirmala Sitharaman addresses a post Budget press conference at National Media Centre, New Delhi on Tuesday.

Highlights

  • Sitharaman did not raise the standard deduction
  • Concessional rate of 15 per cent has been extended by one year for newly incorporated units
  • The basic personal tax exemption limit in the personal income tax was last revised in 2014

There was no change in the personal income tax slabs in the Union Budget 2022-23 unveiled on Tuesday by Finance Minister Nirmala Sitharaman. Sitharaman, who presented her fourth Union Budget, also did not raise the standard deduction, which was widely anticipated in view of elevated inflation levels and the impact of the pandemic on the middle class.

The standard deduction currently stands at Rs 50,000. The corporate tax rate too was kept at the same level. However, the concessional rate of 15 per cent has been extended by one year for newly incorporated manufacturing units. Speaking to reporters later, Sitharaman explained why the government didn't tinker with the personal income tax category.

"I have not tried to earn even a single paisa by increasing tax this year and even last year. The Prime Minister had given clear instructions that people should not be burdened with taxes at the time of the pandemic, notwithstanding the deficit," she said.

The basic personal tax exemption limit in the personal income tax was last revised in 2014. Notably, personal income tax is one of the most keenly awaited announcements in the Budget every year. Nirmala Sitharaman, however, today proposed to provide a one-time window to correct omissions in income tax returns (ITRs) filed. She said that taxpayers can file an updated return on payment of taxes within two years from the end of the relevant assessment year.

Also Read | Ex-FM Chidambaram calls budget speech 'most capitalist ever', says word 'poor' occured only twice

Also Read | Budget 2022: Delhi Police allocated Rs 10,355 cr

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