The long-term objective of a steady path to progress and the finance minister while presenting the Union Budget 2022 that has not made any major changes to the taxation of individuals.
Tax slabs, deduction, exemption limits. So measures have been introduced to bring in reforms that will further simplify the tax system.
And voluntary compliance promoted by taxpayers also reduces litigation, Cap on a surcharge on long-term capital gains, etc.
Key amendments impacting the individual taxation are available Opportunity to file an updated return, the new provision of filing an updated tax return will not apply, Virtual digital assets.
Reduce litigation, promote voluntary tax compliance, proposed to provide an opportunity for taxpayers to file an updated tax return, for voluntary disclosure of any income which has been omitted by the taxpayer earlier.
The time limit for filing such an updated tax return would be two years from the end of the relevant assessment year.
If the updated return is a return of loss or has the effect of decreasing the total tax liability determined based on the return filed previously and another one increases the refund due based on tax returns filed previously.
Recognizing the advancement of the digital economy and transactions in digital modes, the government needed to bring about a change in the traditional tax system for assets such as cryptocurrencies, non-fungible tokens, etc.
The proposed to tax the proceeds of virtual digital assets. Deduction from such proceeds be limited to the cost of acquisition only, any loss arising from such transaction would not be entitled to be set off with any other incomes.
Further, TDS shall be attracted at the rate of 1% on the transfer of virtual digital assets to a resident, subject to certain conditions. It is also proposed to tax the gift of virtual digital assets in the hands of the recipient.
To grant additional relief to individuals or hufs investing in approved insurance schemes for the benefit of a disabled dependant, it has been proposed to schemes that where payment of annuity or lump sum amount for the benefit of a dependant is made during the lifetime.
Attaining the age of 60 years or more of the individual or the member of the hand in whose name subscription to the scheme has been made.
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