Major Income Tax Changes Applicable from FY 22-23


The 2022-23 Budget has brought in clarity concerning the levy of income tax on crypto assets. From now, crypto profit will be taxed at 30% whereas, provision of 1% TDS will come into effect from 1st July, 2022.

In case receiving a gift in form of cryptocurrency or any other virtual digital asset, it would be liable for taxation as a gift.

The Government has clarified that losses from one Crypto cannot be adjusted against gains from another. It won’t allow tax breaks on infrastructure costs incurred while mining crypto assets as it won’t be treated as the cost of acquisition.

Taxpayers are allowed 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 (AY), subject to payment of taxes.

State government employees will now be able to claim tax benefit of 14 per cent on the National Pension System (NPS) made by their employer from financial year 2022-23.

Capital gains on ULIPs with annual premium of more than Rs 2.5 lakh will be calculated on payments received by the policy holder, including withdrawals and bonus. Long-term gains of above Rs 1 lakh will be taxable at 10%, while short-term gains on the high-premium ULIPs will be taxed at a flat rate of 15%.

As per newly inserted Rule 9D after Rule 9C, interest earned on an employee’s contribution above Rs 2.5 lakh in a year will become taxable in the hands of the employee. In case of government sector employees, the monetary ceiling shall be Rs 5 lakh.

Presently, there is a cap of 15% surcharge on long term capital gain on the sale of listed equity or mutual funds. From 1st April 2022, this cap will be extended to long term capital gain on all assets.

The Central Board of Direct Taxes (CBDT) has introduced ‘e-advance Rulings Scheme 2022’, enabling the taxpayers to file applications for advance ruling through email. The taxpayers will get an appropriate opportunity to be heard through the video conferencing/video telephony hearings before the board for advance rulings.

Knowledge Source :

FICCI Estimates India’s GDP Growth at 7.4 for FY23

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