Corporate Surcharge To Be Reduced From 12% to 7%, Announces FM Sitharaman in Budget 2022

Budget 2022 Latest Updates: Nirmala Sitharaman said the Centre has proposed to reduce the Minimum Alternative Tax to 15 per cent for co-operative societies at par with the corporate.

Budget 2022 Latest Update: Union Finance Minister Nirmala Sitharaman on Tuesday presented Budget 2022 and announced that the government will reduce the corporate surcharge from 12% to 7%.

Giving details, Sitharaman said to provide an opportunity to correct an error, taxpayers can now file an updated return within 2 years from the relevant assessment year.

“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 cost of acquisition,” Sitharaman added.

She also said the Centre has proposed to reduce the Minimum Alternative Tax to 15 per cent for co-operative societies at par with the corporate.

During the Budget presentation, Sitharaman proposed that both Centre and states government employees’ tax deduction limit should be increased from 10% to 14% to help the social security benefits of state govt employees and bring them at par with the Central govt employees.

She went on to add that the 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.

She said, “Total expenditure in FY23 estimated at Rs 39.45 lakh crore, the total resources mobilisation to be Rs 22.84 lakh crore other than borrowing… The government vows a stable and predictable tax regime. It proposes to reduce Minimum Alternative Tax to 15% for co-op societies, at par with corporate.”