The Lok Sabha has passed the Finance Bill 2022 on March 25, 2022. The Bill has been passed with more than 35 changes in the Finance Bill as introduced on February 01, 2022. In the Finance Bill passed by both the houses of parliament some new amendments have been made, and some proposed amendments have been removed or modified.
A snippet of some important changes under Income Tax made in the Finance Bill, 2022 as passed by both the houses of Parliament is presented as under:
1) Loss from one Virtual Digital Asset (VDA) cannot be set-off against income from another VDA.
2) Definition of ‘transfer’ shall apply even if VDA is not held as a capital asset.
3) Restriction on filing of updated return in case of search, survey or requisition.
4) Return of loss filed under section 139(3) can also be updated.
5) Clarificatory amendment on taxation of long-term capital gains referred to in Section 112A for non-resident.
6) Books of accounts in case of trust/ organisation u/s 10(23C) and 11 include books maintained/kept in electronic or digital form.
7) Due date for completing assessment u/s 143(3) of the Act for AY 2020-21 has been extended to 30.09.2022.
8) Provisions of section 194S shall over-rule provision of section 194-O i.e. if any transaction of virtual digital asset is done through e-commerce operator then TDS needs to be deducted u/s 194S and not 194-O.
To download and read the amendments CLICK HERE.
It is important to note that the Finance Bill has also received assent of President and hence from 01.04.2022 it has become Finance Act, 2022 and thus all the amendments mentioned above along with amendments mentioned above have been incorporated in Income Tax Act and other relevant tax laws.
To Download and read Finance Act, 2022 CLICK HERE.