As the finance minister presented the budget 2022, here are the updates related to direct taxation:
– Provision for filing ‘Updated Income Tax returns’ within 2 years from the end of relevant Assessment Year. With this, if any taxpayer forgets to disclose the income in the ITR, he can disclose the income and pay the tax.
– Reduced AMT rates for Co-operatives from 18.5% to 15%
– Reduced surcharge for Co-operatives with a total income of 1Cr to 10 Cr
– Deduction for investment in National Pension Scheme for State Government employees made at par with the Central Govt employees. The deduction will be available up to 14% of Salary ( Basic Salary + DA)
– Virtual digital assets (Cryptocurrency):
Income from transfer of virtual digital assets to be taxed at 30%. No deduction for expenses other than the cost of acquisition. No set-off of losses from any other income.
– Surcharge on Long Term Capital Gains on any assets to be capped at 15%.
– Health and education cess not allowable as business expenditure u/s 37.
– No set-off of losses against undisclosed income detected during the search.