Question

      Which of the following tax reforms have been brought

    in for FY 2022– 23? A.   A new provision permitting taxpayers to file an Updated Return on payment of additional tax. This updated return can be filed within two years from the end of the relevant assessment year. B.   Eligible start-ups established before 31.3.2022 had been provided a tax incentive for three consecutive years out of ten years from incorporation. In view of the Covid pandemic period of incorporation of the eligible start-up will be extended by one more year, that is, up to 31.03.2023 for providing such tax incentive. C.   To increase the tax deduction limit from 10 percent to 14 percent on employer’s contribution to the NPS account of State Government employees as well D.   To reduce Alternate Minimum Tax to 15% for cooperative societies
    A Only A and B Correct Answer Incorrect Answer
    B Only B and C Correct Answer Incorrect Answer
    C Only A and C Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Changes under Direct Tax are: Ø  A new provision permitting taxpayers to file an Updated Return on payment of additional tax. This updated return can be filed within two years from the end of the relevant assessment year. Ø  To reduce Alternate Minimum Tax to 15% for cooperative societies. Ø  to reduce the surcharge on co-operative societies from present 12 percent to 7 percent for those having total income of more than Rs.1 crore and up to Rs.10 crores Ø  To increase the tax deduction limit from 10 percent to 14 percent on employer’s contribution to the NPS account of State Government employees as well Ø  Eligible start-ups established before 31.3.2022 had been provided a tax incentive for three consecutive years out of ten years from incorporation. In view of the Covid pandemic period of incorporation of the eligible start-up will be extended by one more year, that is, up to 31.03.2023 for providing such tax incentive. Ø  Any income from the transfer of any virtual digital asset shall be taxed at the rate of 30 percent. The gift of a virtual digital asset is also proposed to be taxed in the hands of the recipient. TDS on payment made in relation to transfer of virtual digital asset at the rate of 1 percent of such consideration above a monetary threshold Ø  Surcharge on Long Term Capital gain on transfer of any asset has been capped at 15% Ø  No changes in Income Tax Slab Rates.

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