Budget 2022 Highlights - Direct Taxes – Income Tax
- Ammar Dawoodi
- Feb 1, 2022
- 1 min read
Updated: Jun 24, 2023
The focus of the Budget 2022 was on 'digital and technology,' as well as infrastructure, health, education, and the provision of e-services to the general public. This Union Budget set the groundwork and laid out the economic roadmap for the following 25 years.
Amend Previous Returns
A new provision allows taxpayers to amend previous returns and incorporate missing income by making an additional tax payment. The amended return must be filed within two years of the end of the relevant assessment year.
Co-Operative Societies
Alternate Minimum Tax (AMT) rates for co-operative societies have been reduced from 18.5% to 15%.
Co-operatives having a total income of 1 Crore to 10 Crore pay a lower surcharge from 12% to 7%.
Persons with Disability
Tax relief for disabled people: Allow annuity payments to differently-abled dependents when parents reach the age of 60.
National Pension Scheme - 80CCC
Deduction for National Pension Scheme for State Government Employees under Section 80CCC is made at par with Central Government Employees.
Startups
Startups founded before 31.03.2023 (before – 31.03.2022; now extended by one year) will be eligible for tax benefits.
Manufacturing
The deadline for beginning manufacturing in order to claim a reduced tax regime under Section 115BAB is March 31, 2024. (Earlier 31.03.2023; now extended by 1 year)
Virtual Digital Asset
Income from transfer of virtual digital assets to be taxed at 30%; No deduction for expenses other than the cost of acquisition; No set-off of losses
TDS @ 1% on consideration above specific threshold
Gift to be taxed under section 56(2)(x)
Appeals
No repetitive appeals for the common question of laws
Off-Shore Banking Units/ IFSC
Off-shore banking units/ IFSC income to be provided exemptions
Surcharges
Surcharges on some AOPs will be restricted at 15%.
The surcharge on Long Term Capital Gains on any asset will be restricted at 15%.
Health and education cess
Health and education cess are not eligible as company expenses under section 37.
Undisclosed Income
Unreported income discovered during any survey or search cannot be used to offset brought forward loss.
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