Latest Income Tax Updates for FY 2022-23.

As we know, the latest income tax updates for FY 2022-23 have been proposed in the finance budget presented on 1st Feb 2022. The changes for the Financial year 2022-23 are mentioned below:

• ⦁ Provision for filing ‘Updated Income Tax returns’ within 2 years from the end of relevant AY.
• ⦁ Reduced AMT rates for Co-operatives from 18.5% to 15%.
• ⦁ Reduced surcharge for Co-operatives with a total income of 1cr to 10Cr.
• ⦁ Tax relief for persons with disability: Allow annuity payment to differently-abled dependents when parents attain the age of 60 years.
• ⦁ Deduction for National Pension Scheme for State Government employees u.s 80CCC made at par with Central Govt.
• ⦁ Start-ups established before 31.03.2023 (earlier–31.03.2022; now extended by 1 year) will be provided tax breaks.
• ⦁ 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).
• ⦁ Virtual digital assets (Cryptocurrency): 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 a specific threshold.
• ⦁ The gift to be taxed under section 56(2)(x).
• ⦁ No repetitive appeals for a common question of laws.
• ⦁ Off-shore banking units/ IFSC income to be provided exemptions.
• ⦁ A surcharge of certain AOPs to be capped at 15%.
• ⦁ Surcharge on Long Term Capital Gains on any assets to be capped at 15%.
• ⦁ Health and education cess not allowable as business expenditure u/s 37.
• ⦁ No set-off of losses against undisclosed income detected during the search.

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