Union Budget 2022: Five key taxation points that impacts the common man, salaried class

Though no announcement was made in the Income Tax bracket, the FM has made several other announcements that has a direct impact on the common man and the salaried class.

New Delhi: Finance Minister Nirmala Sitharaman has made no announcement regarding the Income Tax bracket, a segment that was highly awaited by the individual taxpayers. However, the FM has made several other announcements that has a direct impact on the common man and the salaried class.

Here's looking at five key taxation points that impacts the common man and salaried class

India is growing at an accelerated pace and people are undertaking multiple financial transactions. The Income Tax Department has established a robust framework of reporting of taxpayers' transactions. In this context, some taxpayers may realize that they have committed omissions or mistakes in correctly estimating their income for tax payment. To provide an opportunity to correct such errors, I am proposing a new provision 22 permitting taxpayers to file an Updated Return on payment of additional tax. This updated return can be filed within two years from the end of the relevant assessment year. Presently, if the department finds out that some income has been missed out by the assessee, it goes through a lengthy process of adjudication. Instead, with this proposal now, there will be a trust reposed in the taxpayers that will enable the assessee herself to declare the income that she may have missed out earlier while filing her return. Full details of the proposal are given in the Finance Bill. It is an affirmative step in the direction of voluntary tax compliance.