Budget 2022: Tax deduction limit for state govt employees to NPS hiked to 14%
Premium- The move is to bring parity between employees of states and central government and to enhance social security benefits.
Finance Minister Nirmala Sitharaman on Tuesday proposed to increase tax deduction limit from 10% to 14% on employers contribution to National Pension System (NPS) account of state and Central government employees.
The move is to bring parity between employees of states and central government and to enhance social security benefits.
Announcing income tax related changes, 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."
Further, the co-operative surcharge will be reduced from 12% to 7%.
The Finance Minister has also proposed to tax any income from transfer of any virtual digital asset at 30%.
No deduction in respect of any expenditure or allowance will be allowed while computing such income, except cost of acquisition, Sitharaman said.
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