Budget updates - Direct Tax 2022




1 - Provision for filing ‘Updated Income Tax returns’ within 2 years from end of relevant AY

2 - Reduced AMT rates for Co-operatives from 18.5% to 15%

3 - Reduced surcharge for Co-operatives with total income of 1cr to 10Cr

4 - Tax relief for persons with disability: Allow annuity payment to differently abled dependents when parents attaining age of 60 years

5 - Deduction for National Pension Scheme for State Government employees u.s 80CCC made at par with Central Govt.

6 - Start-ups established before 31.03.2023 (earlier – 31.03.2022; now extended by 1 year) will be provided tax breaks

7 - Last date for commencement of manufacturing for claiming lower tax regime under Section 115BAB to be 31.03.2024 (earlier 31.03.2023; now extended by 1 year)

8 - Virtual digital assets (Cryptocurrency): 

Income from transfer of virtual digital assets to be taxed at 30%; No deduction for expenses other than cost of acquisition; No set off of losses

TDS @ 1% on consideration above specific threshold

Gift to be taxed u.s 56(2)(x)

9 -  No repetitive appeals for common question of laws

10 - Off-shore banking units/ IFSC income to be provided exemptions

11 - Surcharge of certain AOPs to be capped at 15%

12 - Surcharge on Long Term Capital Gains on any assets to be capped at 15%

13 - Health and education cess not allowable as business expenditure u/s 37

14 - No set off of losses against undisclosed income detected during search

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