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  • Income Tax Amendments Announced In The Budget 2022

Income Tax Amendments Announced in the Budget 2022

From year to year, Indians wait in anticipation of the Union Budget announcement, and the Union Budget 2022 was no exception to this practice. The government’s larger goal is to push the industrial foundations of India forward in the hope of propelling the GDP in a positive direction. It's worth looking into the different announcements made regarding tax in Budget 2022.

Investment plans also act as tax-planning tools, as many avenues help reduce tax liability. There are different types of investment plans, and by choosing the right one, you can invest according to your needs and grow your savings.Read Less

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Written ByPalak Bagadia
AboutPalak Bagadia
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Palak Bagadia, Associate – Digital Marketing at Bajaj Allianz Life, with experience spanning content and performance marketing, recruitment, employee engagement in the BFSI industry.
Reviewed ByRituraj Singh
AboutRituraj Singh
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Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.
Written on: 7th July 2024
Modified on: 7th July 2024
Reading Time: 15 Mins
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Direct Income Tax Changes for Individuals

 

For individual taxpayers, the Budget 2022 hardly announced any changes related to direct taxes and regulations pertaining to individual taxpayers. However, some changes were announced, and these are highlighted below:

  • Surcharge Limit on Long-term Capital Gains - The surcharge on long-term capital gains is now capped at 15% for any gains earned. Previously, this was capped at around 37% (for individuals).
  • Dependents with Disabilities Deductions - In the event you invest in an annuity plan to provide financial security to a disabled dependent, deduction of payment of lump sum/annuity amount is allowed during the lifetime of parents or guardian, where such parent/guardian are senior citizen. Previously this was considered as deemed income of parents/guardians where amount was received for other than death event.
  • Covid - 19 Related Payment Deductions - The following sums will see an exemption from income tax as a result of any illness due to Covid-19:
    • Any payment received from any source for your or your family’s treatment.
    • Any amount that is paid by employer to an employee’s family after the death of the employee due to Covid-19, provided the amount is disbursed within a year of the employee’s demise.
    • Any sum up to Rs. 10 lakh that is received by a family member of a person deceased due to Covid-19, provided the amount is received within a year of the death from any other person. Exemptions that relate to Covid-19 are permitted in retrospect. This means that exemptions apply for any amount received even dating back to FY 2019-20.
  • Extension of the Period of ITR Revision - In case your income tax return needs a revision, you get an extended period of a year to file your revised ITR. Income tax return filing in the case of a revision for the FY 2022-23 can be done before the end of FY 2024-2025.

 

Corporate Income Tax

 

The changes in rates of corporate tax have not seen any shifts, except for the rate of surcharge for Association of Persons, or AOPs, where only corporations are members. Here, any surcharge applicable to tax is capped at 15%.

 

Introduction of Digital Money & Tax on Virtual Assets

 

If you have got onto the bandwagon of investing in cryptocurrency, then you may not be happy with the new tax regulations while filing income tax returns. With the announcements mentioned below, Union Budget 2022 has advocated futuristic legislation:

  • Within FY 2022-23, the Central Bank Digital Currency would be launched.
  • Any gains accrued from the transfer of virtual digital assets would be taxed at 30%.
  • Any loss incurred out of transactions related to digital assets cannot be accounted for against other income.
  • On any payments made for the transfer of digital currency, to any Indian resident, TDS at 1% will be deducted.

 

Conclusion

 

The Budget 2022 concentrated on 'digital and technology' and areas such as health, infrastructure, education, and mass e-service delivery. This Union Budget set the groundwork and framework for the economy over the following 25 years, from India at 75 to India at 1001. While the income tax reform may not be what you were looking forward to as an individual taxpayer post Union Budget announcement, but you have reasons to avail of products like insurance, health, term, or both, to gain the benefit of tax deductions. At the same time, you financially secure yourself and your loved ones based on the products you choose. A choice for the same can be made by evaluating various options available to you and opting for the most suitable one. The income tax calculator available on the Income tax portal can be used for such evaluation.

BJAZ-WEB-EC-00957/22

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**Past performance is not indicative of future performance.

The above information is for general understanding and is meant to educate the general public at large. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information.

The views stated in this article is not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale. Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility.

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*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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%%Above illustration is for Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V03) considering Male aged 25 years | Non-Smoker | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 6,238. 2nd Year onwards premium is Rs. 6,659. Total Premium Paid is Rs. 1,99,349 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly installments (Lumpsum Payout Percentage : 45, Income Payout Percentage : 55) | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. This is inclusive of all the discounts mentioned above.

##Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

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Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04)

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116


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^Subject to Section 10 (10D) conditions i.e. aggregate annual premium for ULIP policies issued on or after 1st February 2021 does not exceed Rs. 2.5 Lakhs.

1Minimum premium mentioned is applicable for Bajaj Allianz Life Goal Assure IV - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L204V01) and is subject to policy terms and conditions.

#Source: https://economictimes.indiatimes.com/investments-marts/eight-crucial-numbers-to-ensure-financial-success/10-times-the-annual-income-is-your-life-insurance/slideshow/16699748.cms . Subject to availability in Bajaj Allianz Life ULIP Plans. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com ) carefully before concluding a sale.

*Benchmark: Nifty 500 Multicap Momentum Quality 50 Index past 5 CAGR Returns, as on 31st December 2024. Past returns of a fund are not necessarily indicative of the future performance of the fund. | Please consult the financial advisor before investing.

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Nifty 500 Multicap Momentum Quality 50 Index Fund is available Bajaj Allianz Life Future Wealth Gain IV - A Unit- linked Non- Participating Individual Life Savings Insurance Plan (UIN:116L202V01), Bajaj Allianz Life Goal Assure IV - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L204V01), Bajaj Allianz Life LongLife Goal III is A Unit-linked Non-Participating Whole Life Insurance Plan (UIN:116L203V01), Bajaj Allianz Life Invest Protect Goal III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L205V01), Bajaj Allianz Life Magnum Fortune Plus III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L207V01), Bajaj Allianz Life Goal Based Saving III - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN:116L206V01) and Bajaj Allianz Life Smart Wealth Goal V - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L201V01)

In addition to the already existing funds, Nifty 500 Multicap Momentum Quality 50 Index Fund is now available with the above mentioned products. Customer has an option to choose from other available funds apart from Nifty 500 Multicap Momentum Quality 50 Index Fund.

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I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any Call made, including via Voice over Internet Protocol & WhatsApp, SMS or WhatsApp messages, in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

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