Finance minister Nirmala Sitharaman did not announce any changes in income tax rates or slabs while presenting the Union Budget 2022. On Social Media, “Middle Class” and “income tax” trended big time as people analysed the Budget and flooded the microblogging platform with memes and jokes.
The disappointment on social media was perceptible after the Union Budget 2022 made no tax concessions for the salaried class. Individual taxpayers, who contribute almost 35-40% of direct tax revenues, had been wanting some income tax relief to offset the economic damage caused by the Covid-19 pandemic.
Pre-Bharat survey had revealed that tax relief to individual taxpayers topped the wishlist for a majority of respondents. 57% of respondents chose personal taxation as the top area for reforms, while 69% of respondents also said they expected the government would increase the basic exemption limit applicable to individual taxpayers from the existing ₹ 2.5 lakh.
While income tax rates were kept unchanged, a big increase in capital expenditure and a 30 percent tax on transfer or sale of digital assets were the mains of Budget 2022. The Finance Minister also announced that a digital rupee will be introduced by the Reserve Bank of India in 2022-23.