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List of Major Amendments made by Finance Act 2022
| section | description |
| 2(12a) | Amendment in the definition of ‘books of account’ |
| 2(42c) | Revision of the definition of slump sales |
| 10(4E), 10(4F), 10(4G), 56(VIB), 80LA | Tax Incentives to IFSC |
| 12AB, 115BBI, 271AAE, 10(23C), 115TD | Rationalization of provisions of charitable trusts and institutions |
| 14a | Explanation that disclaimer under section 14A shall be made even if no exempt income has been earned during the year. |
| 17(2) , 56(2)(x) | Exemption in amount received on medical treatment and death due to Kovid-19 |
| 37 | Clarification on admissibility of expenditure u/s 37(1) for offenses under pharma companies and foreign law |
| 40 | Explanation that ‘cess’ and ‘surcharge’ are nothing but tax and need to be disallowed under section 40 |
| 43, 50 | Reduction in goodwill from a block of assets treated as ‘transfer’ |
| 43B | Explanation under section 43B – No deduction is allowed on conversion of interest liability into other debt instruments. |
| 56(2) (x) (c) |
Provision of section 56(2)(x)(c) – Income from other sources |
| 68 | Section 68 – Cash credit – ‘Source of credit’ must also be explained for loan or borrowing. |
| 79 | Permission to carry forward and set off losses available to erstwhile PSUs pursuant to strategic disinvestment |
| 79a | Penalty under section 272A increased from Rs 100 per day to Rs 500 per day |
| 80ccd | Incentives to National Pension System (NPS) subscribers (State Government employees) |
| 80-IAC | Extension of date of incorporation for start ups eligible for exemption |
| 94 | Rationalization of Bonus Stripping and Dividend Stripping Provisions |
| 115BAB | Extension of start date for new manufacturing companies eligible for 15% lower tax rate |
| 115bbd | Section 115BBD abolished providing concessional tax rate of 15% on dividend income received by an Indian company from a specified foreign company. |
| 115BBH, 47A, 56(2)(X) and 194S | virtual digital assets New tax regime for Virtual Digital Assets (VDA) |
| 115JC, 115JF |
AMT payable by cooperative societies reduced from 18.5% to 15% |
| 119 | Powers of CBDT to provide exemption from levy of fee for late filing of ITR under section 234F: |
| 139(8A) | Filing of updated return under section 139(8A) within 2 years from the end of AY |
| 144B | Amendment in faceless assessment scheme |
| 148, 148A | Rationalization of provisions relating to assessment and revaluation |
| 153(1) | Section 143/144. Completion of assessment under |
| 153B(1) | Completion of determination in cases of some search or demand. |
| 154 | Retrospective tax or penalty for persons allowing deduction of surcharge or cess |
| 158AB | Litigation Management System to be introduced to avoid repeated appeals by Revenue having similar issues |
| 170, 170A, 156A | Amendments applicable to successor entity in case of business reorganization |
| 179 | By changing the heading of section 179 “Liability of directors of private company” Instead “Liability of Directors in the Liquidation of a Private Company”: |
| 194-let | Rationalization of provisions of TDS on sale of immovable property in the light of stamp duty value. |
| 194R | TDS @ 10% on “Profits or Perquisites” arising out of the practice of business or profession |
| 206AB, 206CCA | Rationalization of provisions of section 206AB and 206CCA [Higher TDS and TCS for non-filers of ITR] to widen the tax base |
| 239A | Application to be made to Assessing Officer for refund of TDS deposited on payment to non-residents (Section 239A) |
| 245MA | Amendment to enable the Assessing Officer to pass orders giving effect to the resolution of the dispute by the Dispute Resolution Committee (DRC). |
| 263 | The order of the TPO is now subject to revisional powers of revenue under section 263 |
| 271AAB, 271AAC, 271AAAD | Powers have been given to CIT(A) to impose penalty under 271AAB, 271AAC, and 271AAD |
| 272A | Penalty under section 272A increased from Rs 100 per day to Rs 500 per day |
| 278A/ 278AA |
Non-payment of TDS can lead to prosecution for non-payment of TCS |
| 285B | Expansion of the scope of reporting under section 285B to include persons engaged in specified activities |
PDF version attached: https://www.dpncindia.com/blog/wp-content/uploads/2022/05/list-of-major-amendments-finance-act-2022.pdf
Disclaimer:
The information is based on the Finance Act, 2022. While the information is believed to be accurate to the best of our knowledge, we make no representations or warranties, express or implied, as to the accuracy or completeness of this information. The reader should conduct and rely on his own examination and analysis and is advised to seek his own professional advice. This note is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any error contained herein, whether due to negligence or otherwise or for any damages, whether caused or sustained by a person dependent on it.
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