Direct Tax

• AMT is proposed to be reduced from 18.5% to 15% for co-operative society.

• New provision introduced for filing of an updated return within 2 years from the end of the relevant assessment year on payment of additional tax.

• Surcharge rate reduced from 12% to 7% on co-operative society having total income less than Rs. 10 crores.

• Income from the transfer of virtual digital asset shall be taxed at 30% with no deductions of expenses.

• Period of incorporation for eligible start-ups to claim the tax benefit is extended by 1 year.

• Maximum surcharge on long-term capital gain is capped at 15%

• Surcharge or cess is not allowable as business expenditure.

• No benefit of set-off of loss allowable on income discovered during search and seizure.

Indirect Tax

• GST is a landmark reform.

• Rs 1 lakh crore financial assistance to be provided to states in 2022-23 to catalyse investments.

• Faceless proceedings under Customs is fully established.

• Gift of Virtual Digital Assets to be taxed at receiver's end.

• SEZ reforms in customs to be implemented by 30th Sept, 2022.

• Proposals made for exempting few goods under Customs for promoting manufacturing of Capital goods.

• Customs Duty on Gems and Diamonds reduced to 5%

• Duty concessions provided to high growth electronic items.

• Concessions provided on raw material for boosting manufacturing of Electronics Goods.