Budget 2022: No Relief For Taxpayers As FM Sitharaman Keeps Income Tax Slabs Unchanged

The government is of the view that any change in the current income tax slab structure would be counterproductive, thus, not making any changes to the current Income tax structure.

Taxpayers expected higher tax slab limit to be raised in the Union Budget 2022, as the financial stress caused by the Covid-19 pandemic Image: Getty

New Delhi: Finance Minister Nirmala Sitharaman announced that there will be no change in income tax slabs. The FM made the announcement while presenting Budget 2022-23 in the Lok Sabha on Tuesday. 

It was expected that the higher tax slab limit would be raised in the Union Budget 2022, as the financial stress caused by the Covid-19 pandemic was affecting many taxpayers. 

Nonetheless, no changes have been made on the personal income front, thus, for the FY22-23, there isn't any income tax exemption limit. Moreover, those with earnings over Rs 10 lakh will be in the higher tax slab. 

The news could be a setback for taxpayers who were hoping that the government will increase the income tax slab. The income tax limit has not been increased in the last couple of years.

However, Nirmala Sitharaman announced to provide an opportunity for taxpayers to correct an error. The taxpayers can now file an updated return within two years from the relevant assessment year. 

The government is of the view that any change in the current income tax slab structure would be counterproductive. 

"If the existing rates are changed, some sections of taxpayers may benefit, others may see a rise in their income tax liabilities," said the finance minister in her budget speech. 

According to the current I-T slabs, there is no tax for people with income below Rs 2,50,000.

5 per cent tax for people in the Rs 2,50,00-5,00,000 category, 10 per cent+ Rs 12,500 for Rs 5,00,000- Rs 10,00,000 category.

People having income in access of Rs 10,00,000 shall be liable for Rs 37,500+15 per cent tax.