Mundle Venkatraman & Associates

UNION BUDGET 2022 – A SYNOPSIS

By: Mr. Vipul J Oza - 16th February, 2022

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Tax and Compliance Reforms:

There is no change proposed in the direct tax rates, but steps have been taken to provide a few incentives to ease compliance by taxpayers.
An opportunity to correct an error has been proposed in income tax return whereby a taxpayer can update his/her return within 2 years from the end of the relevant assessment year on payment of applicable interest and penalty.
Income arising from transfer of virtual digital asset will be taxed at flat 30%. Any loss arising from such asset cannot be set-off against any other income. While computing such income no deduction in respect of any expenditure or allowance will be allowed except the cost incurred for acquiring such digital asset. Recipient to be taxed in case of gift of virtual digital asset.
Transfer of virtual digital asset will attract TDS @ 1% above the threshold limit.
Surcharge on long term capital gain on sale of any asset will be restricted to 15% against the current graded surcharge.
Alternative minimum tax proposed to be reduced from 18.5% to 15% for cooperative societies and consortium of companies filing returns as AOPs.
Surcharge on co-operative societies to be reduced from 12% to 7% if total income is in the range of Rs.1 crore to Rs.10 crore.
It is also proposed to amend sections 206AB and 206CCA to provide that ‘specified person’ to mean as a person who has not filed its return of income for the assessment year relevant to the previous year immediately preceding the financial year in which tax is to be deducted or collected, as the case may be, and the amount of tax collected and deducted at source is Rs. 50,000 or more in the said previous year.
Tax incentive for startups extended from 31st March 2022 till 31st March 2023.
Last date for commencement of manufacturing concern or entity for claiming lower tax regime under sec 115BAB extended up till 31st March 2024.
Any person responsible for providing to a resident, any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession, by such resident, shall, before providing such benefit or perquisite, as the case may be, to such resident, ensure that tax has been deducted in respect of such benefit or perquisite at the rate of ten per cent. of the value or aggregate of value of such benefit or perquisite. The section is not applicable if the value of such benefit or perquisite does not exceed Rs.20,000.
It is proposed to substitute clause (a) of sub-section (2) of section 80DD so as to provide that the deduction under clause (b) of sub-section (1) of the said section shall be allowed if the scheme provides for payment of annuity or lump sum amount for the benefit of a dependent, being a person with disability, in the event of the death of the individual or the member of the Hindu undivided family in whose name subscription to the scheme has been made; or on his attaining the age of sixty years or more or the member of the Hindu undivided family, and the payment or deposit to such scheme has been discontinued.
All post office accounts to be upgraded with Net Banking facility.
NPS deduction limit to be increased for state government employees from 10% to 14%.
Undisclosed income detected during search or seizure operations cannot be set-off against brought-forward losses.
Digital rupee to be issued by RBI starting from FY 2022-23.
Sovereign green bonds to be issued via public sector.

Disclaimer: The information contained herein is of general nature and based on the union budget. Applicability of the information to specific situations should be determined through consultation with your Tax advisor only.

Disclaimer

The Blogs published in this website are for educational purposes only. It is meant to give you a general information and a general understanding of the topics discussed therein and not to provide you or any person any professional advice thereof. By using this website you understand that there is no professional relationship between you and Mundle Venkatraman and Associates (MVA) or with any of its partners, associates or employees. Any information available on this website should not be used as a substitute for competent professional advice.

UNION BUDGET 2022 – A SYNOPSIS

UNION BUDGET 2022 – A SYNOPSIS

By: Mr. Vipul J Oza - 16th February, 2022

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Tax and Compliance Reforms:

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