The COVID-19 pandemic, and the subsequent lockdowns and mobility-related restrictions that have followed, have warranted companies to make unprecedented changes to their operational structures, sometimes almost overnight, to safeguard employee health without compromising business continuity.

 

In most cases, this has meant transitioning to a work-from-home model. But while some aspects of the change may have been welcome for both, employers and employees, others have left scars that many hoped would be addressed in the latest Budget.

 

The shift to a work-from-home model has had a significant and enduring effect on the pockets of employees. Where they once never needed to worry about reimbursable mobile phone charges, furniture, electricity and internet-related expenses thanks to these being taken care of by their employers, working from home has now meant employees have to shoulder all of these costs. In the face of rising inflation and waning average per capita incomes, the salaried class was looking for some relief from the finance minister in the way of income tax concessions.

 

However, in detailing the Budget on Wednesday, Finance Minister Nirmala Sitharaman did not announce any new revisions to the tax slabs in the personal income tax category. The only addition to the government’s income tax policy was that taxpayers may now file updated tax returns within two years of their original filing.

 

“To provide an opportunity to correct an error, taxpayers can now file an updated return within two years from the relevant assessment years,” said the finance minister.

 

“Any income from the transfer of virtual digital assets will be taxed at 30 per cent. Tax of gift of such assets to be paid by the recipient,” she added. She also announced that tax for cooperative societies has been cut to 15 per cent to “provide a level playing field between cooperatives and corporates.” Surcharge on cooperatives has also been slashed to 7 per cent, noted Sitharaman.