For Indian taxpayers, February 2022 started with the Finance Minister N. Sitharaman unveiling the Union Budget for the year. Sitharaman stated that Union Budget 2022 would form the foundation for India’s economic growth over the next 25 years.
But, what does it mean for the average citizen? If you are an investor, cryptocurrency enthusiast, or paying off a loan, you should know how the Budget 2022 and personal loan/ finances will work out.
So, here’s what you need to know.
#1 There will be no changes in income-tax slabs
Indian citizens are currently facing the consequences of the pandemic, including health concerns and a struggling economy.
Unfortunately, the Union Budget of 2022 did not modify the existing tax slabs. Nor did it offer any tax rebates on personal loans.
So, for FY 22-23, the present tax rates on income will continue.
Additional Read: Union Budget 2022: What to Expect from Budget 2022?
#2 India’s digital currency is coming soon
Finance Minister N. Sitharaman has announced that the RBI (Reserve Bank of India) will soon be issuing its own digital currency, built upon a blockchain platform. So, if you are a crypto investor, get ready! You can expect this currency to hit the market by 2023.
The government aims to make money management more inexpensive and efficient with a local cryptocurrency.
#3 Digital assets to be taxed at 30%
The Budget declared a 30% tax on income, sale, or acquisition of digital assets like cryptocurrencies and NFTs. There is an additional 1% TDS on these transactions as well.
These tax rates have been termed excessive by many young people who are investing in fast-growing cryptocurrencies and view it as a negative impact of Budget 2022 on personal finance.
However, many experts deem this as a positive move. The government once proposed a ban on cryptocurrencies, but it is finally opening the door for digital assets in India.
#4 Income-tax return filing extended
One of the most well-received aspects of this year’s Union Budget is that it provided some flexibility for filing taxes.
You can now file your updated tax returns within two years from the end of the assessment year. And if you have missed filing certain incomes, you can do so now.
Additional Read: Reasons Why Budget 2022 will be Focusing More on Affordable Housing
#5 Surcharge on LTCG slashed
The Union Budget has now limited surcharges on LTCG (long term capital gains) at 15% on all assets. This reduction is a relief to investors because previously, this limit was 37% for assets other than stocks.
To sum up
With the Union Budget 2022, the government wants to introduce new reforms and schemes for the taxpayers’ benefit. However, the long-term implications of these measures remain to be seen.
Meanwhile, if you need funds for immediate expenses but don’t want to deplete your savings, you can avail of a loan at affordable personal loan interest rates.
With a reputable lender like Tata Capital, you can take a loan for medical emergencies, travel, or any other personal use. To learn more about our offerings and check your potential EMIs, use our personal loan EMI calculator today.