In 2022, the Budget session had a lot of highlights, here are some of the highlights that can impact the present Budget 2023.
1. ITR- U
If you forget to report an income or made a mistake in your Income Tax Return (ITR), Section 139(8A) of the Income Tax Act gives you a chance to correct it within two years. This two-year period is calculated from the end of the year in which the original return was filed. The ITR-U was introduced to help taxpayers improve their tax compliance without facing legal consequences. It allows individuals to update their ITR within the specified time frame.
2. Taxation of VDA
According to Section 2(47)(A) of the Income Tax Act, a Virtual Digital Asset (VDA) are digital assets such as cryptocurrency, NFTs, and any other digital asset notified by the government in the official gazette. The central government has the authority to notify any other digital asset that it considers a VDA. If a taxpayer has income from the transfer of VDA, they must pay an income tax of 30%.
3. Faceless Assessments
The government launched “faceless assessments” on October 7, 2019, with the goal to allow individuals to file income tax and resolve disputes without the need for personal contact with officials. To date, a total of 58,319 cases have been assigned to be handled online, and 7,116 of these cases have been resolved.
4. Exemptions for COVID 19
Relief has been provided in 2022 to persons who have received money for expenses incurred on treatment of Covid 19. The budget for 2022 included provisions for relief to those who have received payments for expenses related to treatment for COVID-19, as well as for payments made to family members in the event of a death caused by COVID-19, up to a maximum of INR 10 lakhs.