Faiz Tax solution

*DIRECT & INDIRECT TAX UNION BUDGET 2022*

Direct Taxes

1. *New Updated ITR* - On payment of additional tax within 2 yrs of AY

2. *MAT Reduced for Co Operatives* - 15%. Surcharge reduced to 7% for those having income between 1Cr - 10 Cr

3. Period of Tax Incentive for Start Ups extended to 31.3.23

4. Manufacturing Co. Time of starting operation extended to 31.3.24

5. Virtual Digital Asset to be taxed at 30%. No deduction except certain cost. No set off against other income. Gift also taxed in hands of recipient. TDS @1%

6. *Appeal Management* - Dept not to file appeal incase of similar matter pending in HC/SC

7. *LTCG Surcharge* capped at 15%

8. *Cess not allowable as Business Expenditure*

9. Deduction for Contribution to NPS tier 1 scheme has been increased from 10% to 14% for state govt. Employees

*Indirect Taxes* -

1. SEZ to be Customs and IT Driven. ONLY Risk based checks by 30th Sept 2022

2. Gems & Jewellery Customs Duties reduced.

3. Methanol and other acids Customs duties for manufacturing petrol reduced

4. *Steel Scrap Customs Duty exemption extended* .

5. Import Duties on various Duties reduced.