- Is a return of loss.
- Has the effect of decreasing the total tax liability.
- Results in a refund or increases the refund.
This year’s budget has not introduced any major changes but there are a few changes that we have to look out for and we will be looking at a few of those here. Crypto-Currencies: First let just talk about the crypto-currency and it’s taxation, as it is something which has raised a little debate in the market. Many people have taken a sigh of relief as they finally heard something about crypto from the government. It is officially legal now to trade and transact in crypo-currencies, NFT’s, etc. However, taxation is the worrisome part of it. Cryptos are declared as virtual or digital asset and will be taxed at 30% on income arising from such transfers while allowing no deduction or allowances except the cost of acquisition, Loss from such transfers are also not allowed to be set off against any Income under any head, the gift of digital asset is taxable in hands of recipient and there is 1% TDS applicable on such transfers / transactions. To sum up whatever you do with crypto’s you have to pay some portion of it as a Tax to the government. Digital Rupee / Digital currency by the RBI : You heard it right, the government of India is going to issue it’s own digital currency using the blockchain technology in the year 22-23. This also indicates that the government welcomes technologies like blockchain & other technology and is going to use it in the future for better. The value of this digital rupee will be the same as the Indian rupee. Direct-Taxation: The middle class society of the country is fairly disappointed as there were no sources of tax deductions or exemptions that were allowed. There were some expectations that due to covid and work from home times some specific deductions or allowances will be allowed but there was nothing as such disclosed in this year’s budget. Middle class memes started flooding the internet after Nirmala Sitharaman’s speech. Updated Returns: Provision for filing Income Tax Return to correct the error and omission can be now done within 2 years from relevant Assessment years. Many people have a doubts with Updated return, please note that this will not apply, if the updated return –
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