The Hon’ble Finance Minister presented the Union Budget 2022 on 1st February 2022 proposing measures to boost several sectors of economy. WIth respect to the direct tax proposals, our Hon’ble FM gave an overview of few proposals like granting additional time for correcting mistakes in the tax return and filing updated tax return, taxation of cryptocurrencies, incentives for startups u/s 80IAC and new manufacturing units u/s 115BAB, litigation management, deterrence against tax evasion by disallowing adjustment of brought-forward losses against undisclosed income and capping of surcharge on long term capital gains to 15%. However, as we read the fine print of the Finance Bill, 2022 and the Explanatory Memorandum to the Finance Bill, there are several amendments which were not covered / discussed at length in the Budget Speech.
We have attached below our insights / analysis on the key direct tax amendments proposed in the Finance Bill, 2022.