India: Tax measures in budget 2022-2023

Details about the measures in the Union Budget 2022-2023

Details about tax measures in the Union Budget 2022-2023

The Union Budget 2022-2023 was presented 1 February 2022.

Regarding direct tax:

  • There are no proposals to the basic income tax exemption limit, income brackets (“slabs”), and tax rates.
  • The surcharge rate on all long-term capital assets are being capped at 15%.
  • An option would allow taxpayers to file amended tax returns within two years from the end of the year of assessment year, subject to the payment of additional taxes and fulfilment of certain conditions.
  • The period of incorporation of eligible start-ups for certain tax incentives is being extended by an additional year.
  • Newly incorporated manufacturing entities would also be allowed an additional year’s extension with regard to the time for the start of manufacturing to qualify under the concessional tax regime.
  • Income from the transfer of virtual assets would be taxed at a rate of 30%.
  • The concessional rate of 15% on foreign dividends would be repealed.

Regarding indirect tax, certain time limits would be extended by two months (up through 30 November) with respect to transactions of the prior tax year. Other measures would concern the use of the balance in an electronic credit ledger.

Special economic zone (SEZ) reforms would include changes to the customs administration of a SEZ. Customs duty exemptions on capital goods would be gradually phased out.

Read a February 2022 report [PDF 585 KB] prepared by the KPMG member firm in India that provides more details about the tax measures in the budget 2022-2023

 

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