INCOME TAX Updates (reference from www.incometax.gov.in)
12-Aug-2022 – Dear Taxpayers, It may be noted that statement of donation in Form 10BD and certificate of donation in Form 10BE is only applicable to the fund or institutions approved under sub clause (iv) of clause (a) of sub section (2) of Section 80G i.e Category D – Donation entitled for 50% deduction without qualifying limit. In respect of donations which fall in any other category (excluding category D), the deduction under Section 80G of the Act shall be allowed to an assesse based on the claim made by him in his return of income E.g. Donations made to PMNRF and PM CARES Fund etc.
10-Aug-2022 – E-filing of Updated ITR u/s 139(8A) has also been enabled for ITR 7 for AY 2020-21 and AY 2021-22 using Excel utility.
03-Aug-2022 – MoF expressed its gratitude to taxpayers and tax professionals for making compliance in time leading to a surge in filing of Income-tax Returns.
03-Aug-2022 – Form No. 3CEF, 58C, 58D, 27C, 3BB, 3BC, 10BC and 28A are now available on the e-Filing portal as per DGIT(S) Notification No.3/2022.
02-Aug-2022 – The e-Filing website now offers e-Pay Tax service with wide range of modes for payment of taxes including Net Banking, Debit card, Pay at Bank Counter (Over the Counter), RTGS/NEFT and Payment Gateway (with sub-payment modes as Net Banking, Debit Card, Credit Card and UPI). Under RTGS/NEFT mode, payment of taxes can be made through any bank that offers this service. Tax payment through Protean website [NSDL] is also available to taxpayers as per the existing process.
02-Aug-2022 – E-filing of Updated ITR u/s 139(8A) has also been enabled for ITR 5 & 6 for AY 2020-21 and AY 2021-22 using Excel utility.
01-Aug-2022 – A new record has been created of over 72.42 lakh (7.24m) ITRs filed on a single day. About 5.83 crore ITRs have been filed till 31st July, 2022.
01-Aug-2022 – DGIT (S) Notification No 5/2022 issued for Reduction of time limit for verification of ITR from 120 days to 30 days of transmitting the data of ITR electronically.
Budget 2022 Highlights (Direct Taxes – Income Tax)
- A new provision is introduced to allow taxpayers to update the past return and include omitted income by additional tax payment. The updated return can be filed within two years from the end of the relevant assessment year.
- The tax incentive period is extended by one year for startups. Eligible startups incorporated under Section 80-IAC will now get tax benefits until March 31, 2023.
- Corporate surcharge to be reduced from 12% to 7%.
- Alternate Minimum Tax (AMT) to be reduced to 15% for co-operative societies.
- Income from transfer of digital assets such as crypto to be taxed at 30%. No deductions will be allowed except the cost of acquisition of digital assets. Loss on sale of digital assets cannot be set off against any other income. TDS at 1% will be levied above the threshold. Gifting of digital assets will also be taxable in the hands of the receiver.
- To bring parity between Central and state government employees, the Finance Ministry proposed to increase the threshold of employers contribution to the National Pension Scheme (NPS) Tier-I account from 10% to 14%.
- The parent/guardian of the differently-abled can get a tax deduction on payment of the annuity or lump sum during the lifetime of parent or guardian, once the parent or guardian has attained 60 years.
- Any surcharge and cess levied on income are not allowed as business expenditure.
- Brought forward loss cannot be set off against undisclosed income detected during any survey or search.