Current State of the Economy
Some Key Takeaways
Virtual Digital Assets i.e Bitcoin & other Cryptocurrency :
Transfer of virtual digital assets will be taxable at the rate of 30%. No deductions will be allowed except cost of acquisition. No setoff of loss will be allowed against Income from any other head of Income
Gift of cryptocurrencies to be taxed at receiver's end
TDS of 1% on payment made for transfer, above a monetary threshold
Some Other points:
To provide equal treatment to central & state govt employees, it is proposed to increase tax deduction limit from 10% to 14% on the employer's contribution to the NPS account of the state govt. employees as well.
Reduced alternate minimum tax for cooperatives from 18.5% to 15%
Existing tax benefits for Startups which were offered redemption of taxes for 3 consecutive years to be extended by 1 more year.
Introduction of digital rupee using blockchain technology
Updated Return of Income :
An updated return of Income under Income tax can be filed to rectify omisions and errors within 2 years from the end of the relevant assessment year. This is to declare any additional Income and pay additional tax accordingly which will reduce the Income Tax Litigations.