01/02/2022
*BUDGET HIGHLIGHTS | DIRECT TAX*
*1.* Provision for filing *‘Updated Income Tax Returns’* within 2 years from the end of relevant assessment year.
*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 Govt. 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 (VDA) (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 LTCG on any assets to be capped at 15%.
*13.* Health and Ed. Cess not allowable as business expenditure u/s 37.
*14.* No set off of losses against undisclosed income detected during search & survey.
*15.* No Change/Relief in Income Tax slabs, Tax rates, deduction under chapter VI-A, Standard Deduction.[Very disappointing for common Tax Payer]
