Key takeaways from the Budget speech 2022-23
Direct Tax reform
Taxation on transfer of virtual digital Asset :
> Taxed @30%
> No Deduction allowed on any expenditure or allowance except Cost of Acquisition
> Loss on transfer is not allowed to be set off any other income.
> TDS @1% on payment for transfer to asset above monetary limits.
> Gifts of virtual asset is also proposed to be taxed on the hands of recipient.
Pending case and filing of new case
> Filing of further appeal by assesse shall be deferred till the question of law involved in same case is pending in-front of High court or supreme court unless decree is not announced on them.
> Will reduce number of litigation.
Income of Non resident from offshore derivative instrument over the counter derivative issued by offshore bank
> Income from roaylity, portfolio management services and interest received in IFSC shall be exempt from tax subject to condition.
Concessional Tax regime 115BAB
> Taxed @15% for Newly Manufacturing entity
> Last date for incorporation of manufacturing entity has been now increased by 1 year from 31/3/23 to 31/3/24.
Change in Surcharge
> Surcharge for AOP/ Consortium has been reduced from 37% to 15%.
Benefits for Co-operative Society
> Changed rate of AMT (Alternate Minimum Tax) from 18 % to 15%
> Surcharge has also been reduced from 12% (if income > 1 cr) to 7% in line to Companies for income from 1 crore to 10 crores.
Tax relief to person of disability
> Allowance of deduction on payment of A over life time of guardian Incentive to startup
> Last date of incorporation of startup has been increased till 31/3/2023. (extended date) > Allowed deduction for 3 years out of 10 years from the date of incorporation.(existing)
Long term capital gain
> On listed equity share – 15%
> On other asset- 30%
> Now proposed to all the transfer of asset -15%
Allow ability of Income tax and surcharge and education cess
Is not allowable expenditure. Similarly education cess is also not allowable expenditure. This is to nullify the judgement held by court.
Undisclosed income
Ambiguity for setting off losses has been removed by clarifying that no set off losses shall be allowed against undisclosed income.
TDS on agent
Benefits to be passed to agents. In order to track this benefits, TDS has been proposed to be deducted if monetary limit exceeds Rs. 20,000.
ITR returns
One is allowed to correct any omissions in ITR returns within 2 years from the end of assessments year.
Indirect tax
GST collection 1,40,986 crores for the month of January 2022 which is the highest collection.
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