No changes in I-T slabs

New Delhi: While presenting the Budget, Union Finance Minister Nirmala Sitharaman proposed no change in income tax slabs. She, however, proposed that both Centre and States government employees' tax deduction limit be increased from 10% to 14%. The move, she said, will help the social security benefits of State government employees and bring them at par with the Central government employees.

Sitharaman 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%. "Corporate surcharge to be reduced from 12% to 7%. I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30%.

No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except the cost of acquisition," she said. With the Budget proposing taxing virtual assets at 30%, Sitharaman said that it cannot be mentioned as a replacement of any other income and 1% TDS to be charged further on payments made using digital assets to keep a track on transactions. Sitharaman said that cooperative societies can now pay 18.5% alternate minimum tax and companies pay 15%.

From now, cooperatives, too, will have to pay only 15%. "To provide an opportunity to correct an error, taxpayers can now file an updated return within 2 years from the relevant assessment year…Digital rupee to be issued using blockchain and other technologies; to be issued by RBI starting 2022-23. This will give a big boost to the economy," she added. The Finance Minister also announced tax relief for persons with disabilities. The parents or guardian can take insurance from their children with disabilities, she said. The payment of annuity or lump sum for disabled dependent will be exempted during the lifetime, she added.