The Union finance budget 2022, tabled by the Union Finance Minister Ms. Nirmala Sitharaman includes the following key proposals;
- Updated Returns can be filed within 2 years of Original Return to rectify errors and omissions by paying additional taxes.
- Reduced Alternative Minimum Tax to 14% for Co-operative Societies and Companies
- Eligible Startups can avail tax incentives upto 4 years from the date of incorporation
- Taxation of Virtual Digital Assets: Any income from transfer shall be taxed at 30%, No Deduction except cost of acquisition of assets
- 1% TDS will be levied on payments made on the transfer of digital assets
- Gift of Virtual Digital Assets shall be taxable in the hands of Recipient
- Health and Education Cess are not allowable as Business Expenditure.
- NPS Deduction limit increased to 14% to State Employees to bring parity with the benefits to Central employees
- Surcharge rate reduced from 12% to 7% for co-operative society having total income less than Rs. 10 crores
- IBC laws will be amended to enhance the resolution process and to facilitate cross border insolvency resolution
- RBI will issue Digital Rupee using block chain technology
- Long term capital gains to be subject to surcharge only at 15% for all assets
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