The annual rate of inflation is 12.96% (Provisional) for the month of January 2022 (over January 2021), which is a continuous decline from 14.87% in November 2021 and 13.56% in December 2021. The high rate of inflation in January 2022 is primarily because of the rise in prices of mineral oils, crude petroleum & natural gas, basic metals, chemicals, chemical products, food articles, etc. as compared to the corresponding month of the previous year.
You can find us by searching for – CA in Chinchwad or CA in Pimpri Chinchwad.
We at Akhil Amit And Associates, Best Chartered Accountant in Chinchwad, take care of all your taxation and financial needs. We are a click away – Contact Us.
MCA has amended the Companies (Accounts) Rules, 2014 w.e.f. 11th February 2022 to provide that every company covered under the provisions of CSR shall furnish a report on Corporate Social Responsibility in Form CSR-2 to the Registrar for the preceding financial year (2020-2021) and onwards as an addendum to Form AOC-4 or AOC-4 XBRL or AOC-4 NBFC (Ind AS).
However, for the preceding financial year (2020-2021), Form CSR-2 shall be filed separately on or before 31st March 2022, after filing Form AOC-4 or AOC-4 XBRL or AOC-4 NBFC (Ind AS), as the case may be.
Why has the government of India has provided various deductions such as 80C, 80CCC, 80CCD, 80D?
Deduction from 80C, 80CCC, 80CCD, 80D is some of the most used deductions used by an individual to save taxes. The income tax department with an aim to inculcate saving and investment habits among individuals, and spread awareness for health insurance, has provided tax benefits under sections 80C and 80D. In the current era where education cost has increased and people take education loan to cover the cost of education, the government by providing deduction under 80E for the interest paid on education loan.
80C & 80CCC, 80CCD
80C is one of the most favorable sections and can be regarded as a gift to an individual given by Income-Tax Authorities to save some taxes. It is one of the most widely used sections for reducing taxes. Whenever you watch any news channel before the financial budget, you will hear people’s demand to increase the limits provided under Section 80C. The benefit under this section is provided to individuals and HUFs.
Note – Companies, LLPs, Partnership Firm, AOI, BOI, and other forms of business cannot avail the benefit under this section.
What is the current limit under 80C?
⦁ The current overall limit under section 80C is Rs. 1,50,000.
⦁ Even if you invest under 80CCC, the overall limit is still Rs. 1,50,000 (In easier sense limits combined for both 80C and 80CCC is Rs. 1,50,000) with an exception that you can avail the extra tax benefit of Rs. 50,000 if you invest in NPS covered under section 80CCD(1B).
Instrument covered under section 80C?
The instrument for Tax Deduction
80C
Following instrument qualifies for a deduction under section 80C – Public Provident Fund, Employees Provident Fund (the employees’ contribution, Equity Linked Saving Scheme (ELSS Mutual Fund), Life Insurance Premium, Stamp duty, and registration charges when a new property is purchased, principal payment for housing loan, Sukanya Samriddhi Yojna, National Saving Certificate (NSC), ULIP Policies, Tax Saver FD for 5 years, Infrastructure Bond, Senior citizen savings scheme (SCSS), etc.
80CCC Deduction for life insurance annuity plan.
80CCC allows a deduction for payment of premium/contribution for annuity pension plans. Note – Pension received from the annuity or amount received upon surrender of the annuity, including interest or bonus accrued on the annuity, is taxable in the year of receipt.
Note – The contribution above is combined with Rs 1.5 Lakh (limit allowed u/s 80C).
80CCD(1) Deduction for NPS
Employee’s contribution under NPS is deductible under section 80CCD(1) –
Maximum deduction allowed is least of the following – 10% of salary (Basic Salary+Dearness Allowances) (in case taxpayer is employed) and – 20% of gross total income (in case of self-employment).
Note – The contribution above is combined with Rs 1.5 Lakh (limit allowed u/s 80C).
80CCD(1B) Deduction for NPS
Additional deduction of Rs 50,000 per year is allowed for the amount deposited into the NPS account eligible under section 80CCD(1B).
Note – Contributions made to Atal Pension Yojana are also eligible for deduction under 80CCD(1B).
80CCD(2) Deduction for NPS
Benefit in this section is allowed only to salaried individuals and not self-employed. Employers’ contribution is allowed for deduction up to – 10% of basic salary plus dearness allowance.
80D
80D – Deduction for payment of Medical Insurance Premium –
Section 80D is allowed as a deduction for money spent on maintaining your health and health insurance and assumes great significance in your tax planning and managing personal finance.
The deduction is available for payment of premiums for health insurance policies and medical expenses for senior citizens.
Who can avail the deduction, for whom and up to what amount?
⦁ Any individual or HUF can avail of deduction u/s 80D.
⦁ The deduction is available for payment of insurance premium of –
⦁ Self
⦁ Spouse
⦁ Dependant children
⦁ Parents
Insured
Deduction Amount in Rs.
Age Below 60 yrs.
Age Above 60 yrs.
Self, Spouse, and Children
25,000
50,000
Parents
25,000
50,000
Max Deduction
50,000
1,00,000
Opt Preventive Healthcare*
5,000
5,000
What is Preventive Heath Checkup, and what qualifies for deduction?
⦁ To promote the habit of getting your body checkup every year, the government started giving deductions for a preventive health checkup from 2013-14. The idea of preventive health check-ups is to identify any illness and mitigate risk factors at an early stage through frequent health checkups.
⦁ The expenditure for health checkups can be made in cash.
⦁ Maximum deduction for self, spouse, and family is Rs. 5,000 (subject to overall ceiling mentioned above) and Rs. 5,000 for parents (subject to overall ceiling mentioned above).
Can we claim a deduction for Medical Expenses of Parents who are senior citizen?
⦁ In case your parents are senior citizens and they don’t have any active health insurance policy and they are not filing their Income Tax Returns, then you can claim expenditure incurred on their medical treatment as expenses subject to a maximum deduction of Rs. 50,000.
⦁ Expenditure can be made in cash.
⦁ Senior citizen includes super senior citizen.
Note –
⦁ Cash Payment for paying health insurance premiums is not allowed as a deduction, hence the premium has to be paid electronically or cheques.
⦁ In case premium or expenditure is paid on behalf of grandparents or siblings or working children or any other relative, then the deduction is not allowed.
⦁ HUF can claim a deduction under Section 80D for a medical insurance taken for any of the members of the HUF.. deduction will be Rs 25,000 if the member insured is less than 60 years, and will be Rs 50,000 if the insured is 60 years of age or more.
For Other deductions available for individuals – Read More.
FM Housing projects allotted Rs 48,000 crore for FY23 under the PM Housing scheme. Rs 60,000 Cr allocated to cover 3.8 crore households for tap-water.
⦁ Chemical-free natural farming is to be promoted throughout the country. FY22 farm procurement value to be ₹2.37 lakh crore. To implement the scheme to lower dependence on oilseed imports.
⦁ Rs 1,500 Cr to be allotted for development initiatives for northeast in FY23.
⦁ Required spectrum auction for 5G rollout to be conducted in FY22-23. Contracts for laying optical fibers via PPP mode will be awarded in FY23.
⦁ 68% of capital procurement budget to be earmarked for domestic Defence Industry. To set up an umbrella body for Defence Equipment Certification.
⦁ Additional allocation of Rs 19,500 crore for PLI in solar Photovoltaic module manufacturing, says FM.
⦁ Capital goods stocks FY23 Capex target at Rs 7.50 lakh crore from Rs. 5.5 lakh crore in FY22.
⦁ BUDGET 2022: CRYPTO: INDIA FIN MIN SAYS TO LAUNCH CENTRAL BANK DIGITAL RUPEE CURRENCY.
⦁ 68% of defense Capex to be kept for domestic cos. Defense R&D will be opened up for industry startups, says FM.
⦁ Slab raised from 10% to 14% for contribution to NPS by employers.
⦁ Crypto transactions are to be taxed at 30% without any deductions.
⦁ LTCG surcharge capped at 15% for unlisted assets (earlier it was graded) – this is enormous for HNIs.
⦁ Customs duty on Steel Scrap extended by one year.
⦁ Duty On Unpolished diamonds Is Reduced To 5% Duty Reduced on Selective Chemicals specially used in Petchem Customs Duty On Umbrellas Increased To 20% Customs Duty On Steel Scrap Extended For 1 Year.
⦁ Customs duty on methanol and acetic acid reduced Positive for Balaji amines, alkylamine (methanol is a raw material) Negative for Acetic acid producer- GNFC.
⦁ GDP growth for FY 22 is expected to be 9.2%, the highest for any large economy.
⦁ PLI (Production Linked Incentive scheme) in 14 sectors for Aatmanirbhar Bharat to create 6 million jobs, an additional allocation of Rs 19,500 crore for PLI in solar PV module manufacturing.
⦁ Promoting Fintech and the digital economy is a focus area for this budget.
⦁ 75 digital banking systems in 75 districts by scheduled commercial banks.
⦁ IBC to be amended to improve the efficiency of the resolution process, including cross border.
⦁ Core Banking Services to start in Post offices.
⦁ PM Gati-shakti master-plan Has scope to enhance multimodal communication through 7 engines, 2000 km of the rail network to be brought under KAVACH & Highway network to grow by 25,000 km in FY23.
⦁ Contracts for implementation of multimodal logistics parks at 4 locations to be awarded in 2022-23, in PPP Mode.
⦁ ECLGS (Emergency Credit Line Guarantee Scheme) to be extended up to March 2023, guaranteed cover extended by another Rs 50,000 crore.
⦁ 8 million new dwellings in rural, urban areas to be completed under PM Awas Yojana.
⦁ Rs 2.37 trillion worth of MSP direct payments to wheat and paddy farmers.
⦁ Rs 2 trillion outlay for MSMEs. Additional loans for 13 mn MSMEs.
⦁ Rs 48,000 crore allocated to housing projects under *PM Housing Scheme* for FY23, Rs 1,500 crore allocated for the development of the Northeast in FY23 & Desh stack e-portal to be launched to promote Digital infra.
⦁ New provision to file the updated return within 2 years of the relevant assessment year.
⦁ The alternate minimum tax for cooperative societies down from 18.5% to 15%.
⦁ The tax deduction limit for state Govt employees* to NPS was raised from 10% to 14%**.
⦁ Surcharge on Corporate tax pruned from 12% to 7% Surcharge on the transfer of long-term capital gains tax capped at 15%.
⦁ Tax exemption to start-ups extended to March 2023.
⦁ Gross GST collection for January 2022 at a record Rs 1.41 trillion.
⦁ No change in income tax slab.
⦁ Electric Vehicles battery-swapping policy is to be brought out with interoperability standards.
⦁ Concessional duty on import of capital goods to be phased out.
⦁ Duty on unpolished diamonds to be reduced to 5%.
⦁ Customs duty on steel scrap extended by a year.
⦁ RBI led digital rupee using blockchain to be launched in FY23, *1% TDS* on the transfer of virtual digital assets & income to be taxed at 30%.
⦁ 68% of capital outlay for the Domestic defense industry.
⦁ Revised Fiscal Deficit 6.9% of GDP in FY22 as against 6.8% in Budget estimates, Fiscal deficit at 6.4% in FY23.
⦁ Total expenditure in FY23 estimated at Rs 39.45 trillion; total resources mobilization to be Rs 22.84 trillion other than borrowing.