1.Amendment of section 139 – Insertion of Section 139(8A)
Any person, for an assessment year (herein referred to as the relevant assessment year), may furnish an updated return of his income whether he furnished a original return u/s 139(1) or revised return u/s 139(5) or not, at any time within twenty-four months from the end of the relevant assessment year.
Provided that the provision of this sub-section shall not apply, if –
- the updated return is a return of a loss
- Due to updated return, his original tax liability decreased, original tax liability means the total tax liability determined on the basis of return furnished under subsection (1) or sub-section (4) or sub-section (5)
- Due to updated return, his original refund amount increased, original refund amount means the total tax liability determined on the basis of return furnished under subsection (1) or sub-section (4) or sub-section (5)
A person shall not be eligible to furnish an updated return, where––
- a search has been initiated under section 132 or books of account or other documents or any assets are requisitioned under section 132A in case of such person
- a survey has been conducted under section 133A in case of such person
2.Tax on income from virtual digital assets – Insertion of new sections 115BBH and 115BBI
- Income from the transfer of any virtual digital asset shall be taxable at the rate of thirty per cent
- No deduction in respect of any expenditure other than cost of acquisition shall be allowed to the assessee
- Loss from transfer of the virtual digital asset can not be set off from any other income
3. Surcharge on Long Term Capital Gain reduced up to 15%
Surcharge on Long Term Capital Gain u/s 112 (Sale of Land & Building) can not exceed 15% – Earlier Surcharge on Long Term Capital Gain u/s 112A, Short Term Capital Gain u/s 111A and Dividend Income could not exceed 15%. Now Long Term Capital Gain u/s 112 is also covered
4.Reduction in Surcharge in case of Coperative Society
New Rate of Surcharge
1) Surcharge is 7% of Income Tax if net income exceed Rs 1 Crores but not exceed Rs 10 Crores
2) Surcharge is 12 % of Income Tax if net income exceed Rs 10 Crores
Old Rate of Surcharge – Surcharge is 12 % of Income Tax if net income exceed Rs 1 Crores
5.Reduction in AMT in case of Cooperative Society
AMT rates for Co-operatives has been reduced from 18.5% to 15%
6.Insertion of Section 194S
Any person who buys a virtual digital asset is liable to deduct 1% TDS from sale consideration
TDS shall not be deducted in a case, where––
- the consideration is payable by a specified person and consideration does not exceed fifty thousand rupees during the financial year; or
- (b)the consideration is payable by any person other than a specified person and consideration does not exceed ten thousand rupees during the financial year
Specified person –
- An Individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business does not exceed one crore rupees or fifty lakh rupees in case of profession during the financial year immediately preceding the financial year in which such virtual digital asset is transferred
- An individual or a Hindu undivided family, not having any income under the head “Profits and gains of business or profession
7. Deduction of tax on benefit of perquisite in respect of business or profession Insertion of Section 194 R
Any person who is 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 if the value or aggregate of value of such benefit or perquisite exceed twenty thousand rupees.
It is also proposed to clarify that the expression “person responsible for providing” means the person providing such benefit or perquisite, or in case of a company, the company itself including the principal officer thereof.
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