Nirmala Sitharaman announced a new tax rule for taxpayers where a taxpayer can file an updated return on payment of taxes within two years from the end of the relevant assessment year.
This is a new provision that will ensure voluntary tax filing and reduce litigation, the FM said.
“Trust-based governance as a concept is now also being introduced in the income-tax law. If the omissions and mistakes, a new provision is announced to file an updated return to revise and make payment of appropriate taxes, which can be filed within two years from the relevant assessment year. Promotes the trust-based governance,” says Ritesh Kumar, Partner, IndusLaw
30% tax on proceeds of digital assets
Finance minister Nirmala Sitharaman announces 30% tax on proceeds of virtual/digital assets.
“Taxation of virtual digital assets – at 30%. No deductions are other than cost of acquisition. No set off permitted against other income. Tax withholding to be triggered on sale at 1% beyond a certain threshold. Deduction for employer contribution to NPS increased from 10 % to 14% for state govt employees on par with central govt employees. Not extended to non-govt employees,” said Saraswathi Kasturirangan, Partner, Deloitte India.
Tax Deduction limit for state government employees contribution to NPS raised to 14% from 10%.
1% TDS will be levied on payments made on the transfer of digital assets
Long term capital gains to be subject to surcharge only at 15% for all assets
“Long term capital gains to be subject to surcharge only at 15% for all assets as against graded surcharge. Currently, this is available only for listed shares and units of mutual funds.”