- Updated ITR filing window: A new section has been inserted which allows taxpayers to furnish updated tax returns within 24 months from the end of the relevant assessment year upon payment of 25% or 50% as additional tax, depending on the timing of filing the updated return.
- Crypto Tax: Beginning April 1, cryptocurrency gains will be taxed at 30%, which is the highest tax bracket, with a rate that is the same as lottery winnings. From Bitcoin to non-fungible tokens (NFTs), this tax rate would apply to all virtual digital assets (VDAs) and their earnings. Crypto received as gifts shall also be taxable. Further Crypto Losses cannot be used for Set-off against crypto gains.
- State government employees NPS Deduction: State government employees will now be able to claim tax benefit of 14 percent on the National Pension System (NPS) under Section 80CCD(2) made by their employer up to 14 per cent of their basic salary and dearness allowance. The deduction will be similar to that of Central government employees under the said section.
- GST Input Tax Credit: Time limit for availment of ITC under the GST for a financial year is extended to 30 November of the subsequent financial year.
- GST Amendments: Time limit for the issuance of credit note and amendment in outward return for a financial year is extended to 30 November of the subsequent financial year.
- GST Cash Ledger Balance: Balance in Central GST electronic cash ledger is to be made transferrable to the electronic Central GST or Integrated GST cash ledger of different GSTIN of same PAN.
- Tax on PF account: The Central Board of Direct Taxes (CBDT) has decided to implement Income-tax (25th Amendment) Rule 2021 from April 1. It means that a cap of tax-free contributions up to Rs 2.5 lakh is being imposed on the Employee Provident Fund (EPF) account. If the contribution is made above this, then the interest income will be taxed.
- Tax on Dividend from Mutual Funds: Dividends earned from mutual funds or domestic firms will be put under tax brackets from now onwards. A high burden of tax will be levied on investors in higher tax brackets, while less burden will be put on those in lower tax brackets.
- Covid Relief Measures: a) It has been provided that COVID-19 related medical treatment expenses met by the employer for the treatment of an employee or family members shall not be considered as a taxable benefit. Similarly, any financial assistance received by an individual from any person for treatment of COVID-19 related illness for self or family members shall also not be taxable. b) Financial aid received by the family of a deceased person within 12 months from death on account of COVID-19 is not taxable as follows: a. Received from the employer of the deceased person: no limit b. Received from any other person(s): INR 1m in aggregate c ) The last date for commencing manufacturing or production to claim the concessional tax rate (15% plus surcharge and cess) available to newly set-up manufacturing companies has now been extended to 31 March 2024. d) The last date for the incorporation of start-ups eligible for claiming a tax holiday under section 80-IAC has been extended to 31 March 2023.
- GST E-Invoicing: Mandatory E-Invoicing w.e.f. 01st April 2022, if turnover exceeds INR 20 crores in any of the previous years.
