List of Major Amendments made by Finance Act 2022
| Section | Particulars |
| 2(12A) | Amendment to Definition of ‘books of account’ |
| 2(42C) | Amendment to Definition of Slump Sale |
| 10(4E), 10(4F), 10(4G), 56(viib), 80LA | Tax incentives to IFSC |
| 12AB, 115BBI, 271AAE, 10(23C), 115TD | Rationalisation of the provisions of Charitable Trust and Institutions |
| 14A | Clarification that disallowance u/s 14A shall be made even if no exempt income is earned during the year. |
| 17(2) , 56(2)(x) | Exemption of amount received for medical treatment and on account of death due to Covid-19 |
| 37 | Clarification on allowability of expenditure u/s 37(1) for Pharma Cos. & for offence under foreign law |
| 40 | Clarification that ‘Cess’ & ‘Surcharge’ is nothing but tax and needs to be disallowed u/s 40 |
| 43, 50 | Reduction of Goodwill from Block Of Assets to be Regarded as ‘Transfer’ |
| 43B | Clarification u/s 43B – Deduction not allowable on conversion of interest liability into other debt instrument. |
| 56(2)
(x)(c) |
Proviso to Section 56(2)(x)(c) – Income from Other Sources |
| 68 | Section 68 – Cash Credit – ‘Source of Source’ to be explained for loan or borrowings also. |
| 79 | Permissibility of Carry Forward And Set off of Losses Available to Erstwhile Public Sector Undertaking Pursuant to Strategic Disinvestment |
| 79A | Penalty u/s 272A increased from INR 100 per day to INR 500 per day |
| 80CCD | Incentives to National Pension System (NPS) subscribers (State government employees) |
| 80-IAC | Extension of Date of Incorporation for Eligible Start Up for Exemption |
| 94 | Rationalisation of Bonus Stripping and Dividend Stripping Provisions |
| 115BAB | Extension of Date of Commencement for New Manufacturing Companies eligible for lower 15% tax rate |
| 115BBD | Section 115BBD providing concessional tax rate of 15% on dividend income received by an Indian Company from a specified foreign company abolished. |
| 115BBH, 47A, 56(2)(x) & 194S | Virtual Digital Assets
New Tax Regime for Virtual Digital Assets (VDA) |
| 115JC,
115JF |
Reduction of AMT payable by Co-operative Societies from 18.5% to 15% |
| 119 | Powers to CBDT to provide relaxation from imposition of fee for late filing of ITRs u/s 234F: |
| 139(8A) | Filing of updated Return u/s 139(8A) within 2 years from the end of AY |
| 144B | Amendment to Faceless Assessment Scheme |
| 148, 148A | Rationalization of provisions relating to assessment and reassessment |
| 153(1) | Completion of assessment under Section 143/144 |
| 153B(1) | Completion of assessment in certain search or requisition cases. |
| 154 | Retroactive tax or penalty for persons allowed deduction of surcharge or cess |
| 158AB | Litigation management system to be introduced to avoid repetitive appeals by revenue involving identical issues |
| 170, 170A, 156A | Amendments applicable to Successor Entity In Case of Business Reorganizations |
| 179 | Change in the title of section 179 to “Liability of directors of private company” instead of “Liability of directors of private company in liquidation”: |
| 194-IA | Rationalization of provisions of TDS on Sale of Immovable Property in light of Stamp duty value. |
| 194R | TDS@10% on “benefit or perquisite” arising from business or exercise of profession |
| 206AB, 206CCA | Rationalization of provisions of section 206AB and 206CCA [Higher TDS and TCS for non-filers of ITR] to widen tax-base |
| 239A | Application for refund of TDS deposited on payment to non-residents to be made to Assessing Officer (Section 239A) |
| 245MA | Amendment to enable the assessing officer to pass an order giving effect to the resolution of dispute by the Dispute Resolution Committee (DRC) |
| 263 | TPO’s order is now subject to revisionary powers of revenue u/s 263 |
| 271AAB, 271AAC, 271AAD | Power is given to CIT(A) to levy penalty u/s 271AAB, 271AAC, and 271AAD |
| 272A | Penalty u/s 272A increased from INR 100 per day to INR 500 per day |
| 278A/
278AA |
Failure to pay TCS to be a prosecutable offence in line with non-payment of TDS |
| 285B | Widening of scope of reporting u/s 285B to include persons engaged in Specified Activities |
PDF version is attached: https://dpncindia.com/wp-content/uploads/2022/05/list-of-major-amendments-finance-act-2022.pdf
DISCLAIMER:
The summary information herein has been compiled by our expert team of tax consultants based on the Finance Act, 2022. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Reader should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This note is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.
