Budget updates – Direct Tax
1. Provision for filing ‘Updated Income Tax returns’ within 2 years from end of relevant AY.
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 Government 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 (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 Long Term Capital Gains on any assets to be capped at 15%
13. Health and education cess not allowable as business expenditure u/s 37
14. No set off of losses against undisclosed income detected during search
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