Direct Taxes and Finance Proposals - Budget 2022

[CS Swati Dodhi]

Direct Taxes and Finance Proposals - Budget 2022

1. One-time window to correct default/omissions in ITRs filed - Corrected and updated returns to be filed within 2 years.
2. No business expenditure allowable on Cess or surcharge on income.
3. TDS @1% on transfer of virtual assets above a threshold - Taxation on gifts proposed.
4. Surcharge on long-term capital gains @ 15%.
5. Taxation on income from digital asset transfers @ 30%.
6. Except cost of acquisition no deduction allowed while computing income.
7. No set-off of Loss from any other income.
8. Taxation of Gift of cryptocurrencies - to be taxed at receiver's end
9. Provision to allow taxpayers to file an updated return
10. Minimum Alternate Tax for Cooperative societies cut to 15%
11. Reduce surcharge on Cooperative societies to 7%, whose income is between ₹ 1 crore and ₹ 10 crore
12. Employers contribution to NPS account of state govt employees - Tax deduction limit increased to 14%

Finance Proposals

1. Introduction of Digital Rupee by RBI starting 2022-23
2. Measures to step up private capital in infra sector
3. Digital Rupee to be rolled out by 2023
4. Post offices working on the core banking system - access through net and mobile banking, ATMs - online transfer of funds between post office accounts and bank accounts
5. Amendments in IBC to more efficient resolution process
6. Proposal to cross-border insolvency resolution
7. Enhanced scheme for Voluntary winding up of companies
8. Faster dispute resolution through International arbitration Centre.