1. Reduced Alternate Minimum Tax rate and Surcharge on Co-operatives
Alternate Minimum Tax rate for the co-operative societies proposed to be reduced to 15% to bring it at par with the Minimum Alternate Tax payment by companies. Further, surcharge on co-operative societies proposed to be reduced from the present 12% to 7%
2. Rationalisation of Surcharge in Capital Gains Tax
It is proposed to cap the surcharge on long-term capital gains under section 112 at 15% to remove disparity between surcharge on capital gains taxable u/s 111A & 112A and surcharge on long term capital gains taxable u/s 112.
3. Tax incentives proposed for IFSCs Exemption is proposed to be given:
- To income of non-resident from transfer of offshore derivative instruments or over the counter derivatives
- To income from ship leasing activities
- To income of non-resident from portfolio management services
- Section S6(viib) not to apply for VC undertaking receiving funds from Category Viat AIF regulated under IFSC Authority Act, 2019
Measures to rationalise various provisions of the Income-tax Act, 1961
It is proposed to amend section 119 so as to enable CBDT to provide relief on fee imposed for not furnishing the return within the due date.
Measures to rationalise various provisions of the Income-tax Act,1961 pertaining to charitable trusts and institutions
Provisions related to charitable rusts and institutions proposed to be rationalised to ensure effective monitoring and implementation of the exemption regimes to bring consistency and clarity on taxation, etc.
Faceless Assessment Scheme is proposed to be further rationalized and Set-off of losses not to be allowed in certain cases as a deterrence to tax evaders.
- Faceless assessment scheme proposed to be rationalised to address the problems being faced in its implementation and to increase ease of compliance by taxpayers.
- Set-off of losses not to be allowed in search/survey/requisition cases to increase deterrence among tax evaders.
Procedure pertaining to reopening of assessments introduced last year is proposed to be made smoother
Provisions for reopening of assessments proposed to be rationalised to ensure that action is taken in genuine cases of income escaping assessment and the new procedure introduced last year is made smoother and more seamless.
A scheme for taxation of virtual digital assets is proposed to be introduced.
In order to widen and deepen the tax base, it is proposed to make provisions relating to deduction/ collection at higher rates for non-filers more stringent by reducing the time period for which no return has been filed from 2 years to 1 year.
Scheme for taxation of virtual digital assets proposed to be introduced.
- Transfer of virtual digital asset shall be taxed at the rate of 30% without any reduction (other than cost of acquisition), allowance or set off of losses.
- Loss from transfer of virtual digital asset not to be set off from any other income and not be carried forward to subsequent years.
Provisions relating to deduction/collection at higher rates for non-filers are proposed to be made more stringent.
In order to widen and deepen the tax base, it is proposed to make provisions relating to deduction/ collection at higher rates for non-filers more stringent by reducing the time period for which no return has been filed from 2 years to 1 year.
Tax relief is proposed for persons with disability by relaxing conditions for allowing payment of annuity or lump sum amount during the lifetime of parent/guardian
Tax relief for person with disability proposed by relaxing the condition and allowing payment of annuity or lump sum amount during the lifetime of parent/guardian on attaining the age of sixty years or more, where such contribution to the scheme has been discontinued.
Employees of State Government to be placed at par with employees of Central Government in respect of tax benefit on NPS contribution; previously announced Covid relief to be legislated.
- Parity between employees of state and central government proposed for NPS contribution by raising the contribution by state Government to 14% of salary of employee
- Already announced Covid relief is proposed to be legislated.
Date of incorporation of eligible start-ups is proposed to be extended by one year to 31.03.2023.
Date of incorporation of eligible start-ups proposed to be extended by one year to 31st March, 2023.
Date for commencement of manufacturing or production of an article or thing under section 115BAB is proposed to be extended by one year to 31.03.2024.
Date for commencement of manufacturing or production of an article or thing under section 115BAB proposed to be extended by one year to 31st March, 2024.
A new section 158AB is proposed to be inserted, providing for deferring of appeal where identical question of law is pending adjudication
Taking forward the policy of litigation management, a new section 158AB proposed to be inserted, providing that appeal by the Income-tax Department shall be deferred where identical question of law pending in SC or jurisdictional HC in any case.
A new section 139(8A) is proposed to be inserted, allowing taxpayer to file updated return on payment of additional tax.
A new section 139(8A) proposed to be inserted allowing taxpayer to file updated return anytime within two years from the end of the relevant assessment year on payment of additional tax.
