Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, 7th February, 2022

PRESS RELEASE

Around 6.17 crore Income Tax Returns(ITRs) and about 19 lakh major Tax Audit Reports(TARs) filed on the new e-Filing portal of the Income Tax Department 

   Around 6.17 crore Income Tax Returns(ITRs) and about 19 lakh major Tax Audit Reports(TARs) have been filed on the new e-Filing portal of the Income Tax Department as on 6th February, 2022.

   Out of 6.17 crore ITRs filed for AY 2021-22, 48% of these are ITR-1 (2.97 crore), 9% is ITR-2 (56 lakh), 13% is ITR-3 (81.6 lakh), 27% are ITR-4 (1.65 crore), ITR-5 (10.9 lakh), ITR-6 (4.84 lakh) and ITR-7 (1.32 lakh). Over 1.73 lakh Form 3CA-3CD and 15.62 lakh Form 3CB-3CD have been filed in FY 21-22. More than 1.61 lakh other Tax Audit Reports (Form 10B, 29B, 29C, 3CEB, 10CCB, 10 BB) have been filed till 06.02.2022.

   The Department has been issuing reminders to taxpayers through emails, SMS and Twitter encouraging taxpayers and Chartered Accountants not to wait till the last minute and file their TARs/ITRs without further delay. Further, to assist the filers for resolution of any grievance related to e-filing, two new email ids-TAR.helpdesk@incometax.gov.in and  ITR.helpdesk@incometax.gov.in have been provided. All taxpayers/tax professionals who are yet to file their Tax Audit Reports or Income Tax Returns for AY 2021-22 are requested to file their TARs/Returns immediately to avoid last minute rush.

(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT

 

Ministry of Finance

More than 43.34 crore Permanent Account Numbers (PANs) linked with Aadhaar till 24.01.2022

Dated: 07 FEB 2022

As on 24-01-2022, the total number of Permanent Account Numbers (PANs) linked with Aadhaar is 43,34,75,209. This was stated by Union Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in Lok Sabha today.

The Minister further stated that the time-limit as extended by the Government for linking all PAN cards with Aadhaar cards is 31-03-2022.

Speaking on the difficulties involved, the Minister stated that there could be different reasons for difficulties in linking PAN card with Aadhaar card faced by the taxpayers. These inter alia may be on account of mismatch between PAN and Aadhaar details in respect of information regarding name, date/year of birth, mobile number for receipt of OTP for linking of PAN, etc. If the mismatch is on account of Aadhaar Card details, the taxpayer may get the Aadhaar details corrected by concerned authority. Wherever the mismatch or difficulty regarding PAN card itself is brought to notice, action is taken and resolution is provided to the taxpayer, the Minister stated.

****

RM/KMN

(Release ID: 1796312)

 

Ministry of Finance

TAXPAYERS CAN FILE UPDATED INCOME TAX RETURN WITHIN TWO YEARS

TAX RELIEF TO PERSONS WITH DISABILITY

TAX DEDUCTION LIMIT ON EMPLOYER’S CONTRIBUTION TO NPS ACCOUNT OF STATE GOVERNMENT EMPLOYEES INCREASED TO 14% FROM 10%

INCOME FROM VIRTUAL DIGITAL ASSETS TRANSACTIONS TO BE TAXED AT 30%

NEW STEPS TO AVOID REPEAT LITIGATIONS WITH TAXPAYERS

Dated: 01 FEB 2022

The Government proposes to permit taxpayers to file an updated return on payment of additional tax within two years from the end of the relevant assessment year announced the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman while presenting the Union Budget 2022-23 in the Parliament today. She said this would give taxpayers an opportunity to correct any omissions or mistakes in correctly estimating their income for tax payment. She pointed out that currently, if the department finds out that some income has been missed out by the assessee, it goes through a lengthy process of adjudication, the new proposal would repose trust in the taxpayer. She said “It is an affirmative step in the direction of voluntary tax compliance”.

Tax Relief to Persons with Disability

The law currently provides for deduction to the parent or guardian when they take an insurance scheme for the differently abled person only if the lump sum payment or annuity is available to the differently abled person on the death of the subscriber. Pointing out that there could be situations where differently abled dependants may need payment of annuity or lump sum amount even during the lifetime of their parents/guardians, Smt. Sitharaman announced that the Government proposes to allow the payment of annuity and lump sum amount to the differently abled dependent during the lifetime of parents/guardians, on subscribers attaining the age of sixty years.

 

Parity between Employees of State and Central Government

The minister said that to enhance the social security benefits of the State government employees and bring them at par with the central government employees, the Government proposes to increase the tax deduction limit to 14 per cent from 10 per cent on employer’s contribution to the NPS account of State Government employees.

Scheme for Taxation of Virtual Digital Assets

Stating that the magnitude and frequency of transactions in virtual digital assets have increased phenomenally, Smt. Sitharaman announced that “any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent”. She said that the scheme would not allow any deduction in respect of any expenditure or allowance while computing such income except cost of acquisition. Further she said, loss from transfer of virtual digital asset cannot be set off against any other income. The minister also added that in order to capture the transaction details, the Government would also make a provision to provide for TDS on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold. Gift of virtual digital asset is also proposed to be taxed in the hands of the recipient, she said.

Litigation Management

Smt. Sitharaman stated that “a lot of time and resources are consumed in filing of appeals which involve identical issues”. In order to take forward the Government’s policy of sound litigation management and reduce repeated litigation between taxpayers and the department, the Government would make a provision that if a question of law in the case of an assessee is identical to a question of law which is pending in appeal before the jurisdictional High Court or the Supreme Court in any case, the filing of further appeal in the case of this assessee by the department shall be deferred till such question of law is decided by the jurisdictional High Court or the Supreme Court.

 

 

The minister also thanked the taxpayers of the country who have contributed immensely and strengthened the hands of the Government in helping their fellow citizens in the hour of need.

***

RM/BB/BY/KAK

(Release ID: 1794131) 

 

Ministry of Finance

NEW LEGISLATION TO REPLACE SPECIAL ECONOMIC ZONES ACT

WORLD-CLASS FOREIGN UNIVERSITIES IN GIFT CITY TO OFFER COURSES, LARGELY FREE FROM DOMESTIC REGULATIONS

INTERNATIONAL ARBITRATION CENTRE TO BE SET UP IN GIFT CITY

GIFT CITY TO FACILITATE SERVICES FOR GLOBAL CAPITAL FOR SUSTAINABLE & CLIMATE FINANCE IN THE COUNTRY

Dated: 01 FEB 2022

“The Special Economic Zones Act will be replaced with a new legislation that will enable the states to become partners in Development of Enterprise and Service Hubs”, said the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Union Budget for 2022-23, in Parliament today. She added that this would cover all large existing and new industrial enclaves to optimally utilize available infrastructure and enhance competitiveness of exports.

She also proposed various initiatives to make GIFT City more attractive.

GIFT-IFSC

The Finance Minister proposed that World-class foreign universities and institutions would be allowed in the GIFT City to offer courses in Financial Management, FinTech, Science, Technology, Engineering and Mathematics free from domestic regulations, except those by IFSCA to facilitate availability of high-end human resources for financial services and technology.

       Smt. Sitharaman also proposed an International Arbitration Centre which would be set up in the GIFT City for timely settlement of disputes under international jurisprudence. Further, she said that services for global capital for sustainable & climate finance in the country would be facilitated in the GIFT City.

*******

RM/BB/SJ
(Release ID: 1794135)

 

CO-OPERATIVES TO PAY ALTERNATE MINIMUM TAX AND SURCHARGE AT REDUCED RATE OF 15% AND 7% RESPECTIVELY

INCORPORATION DATE FOR START-UPS AND NEW MANUFACTURING ENTITIES TO BE ELIGIBLE FOR TAX INCENTIVES EXTENDED BY AN YEAR

NEW TAX INCENTIVES TO MAKE IFSC ATTRACTIVE

BUSINESSES MANDATED TO CUT TDS ON BENEFITS THEY GIVE TO AGENTS IF AGGREGATE VALUE OF SUCH BENEFITS EXCEED Rs. 20,000 IN A YEAR

SURCHARGE ON LONG TERM CAPITAL GAINS ARISING FROM ALL ASSETS CAPPED AT 15%

SURCHARGE AND CESS ON INCOME AND PROFITS NOT ALLOWED AS BUSINESS EXPENDITURE

PRACTICE OF SETTING OFF, OF LOSSES TO AVOID TAX ON UNDISCLOSED INCOME DETECTED DURING SEARCH AND SURVEY NOT TO BE PERMITTED

Dated: 01 FEB 2022

The Government, in order to provide a level playing field between co-operative societies and companies proposes to reduce the Alternate Minimum Tax rate for co-operative societies to 15 per cent from the current 18.5 per cent announced the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman while presenting the Union Budget 2022-23 in the Parliament today. She added that the Government also proposes to reduce the surcharge on co-operative societies to 7 per cent from 12 per cent at present for those having total income of more than Rs. 1 crore and up to Rs. 10 crore. She said that this would help enhance the income of cooperative societies and its members who are mostly from rural and farming communities.

Incentives to Start-ups

Stating that start-ups have emerged as drivers of growth for our economy, the Minister, in order to assist them during the COVID-19 pandemic, proposed to extend the period for incorporation of the eligible start-up by one more year up to 31^st March 2023 to provide them tax incentive for three consecutive years out of ten years from incorporation. This incentive was earlier available to eligible start-ups established before 31^st March 2022.

Incentives to Newly Incorporated Manufacturing Entities

Smt. Sitharaman said that to establish a globally competitive business environment, a concessional tax regime of 15 per cent tax was introduced by the Government for certain newly incorporated domestic manufacturing companies. The Government proposes to extend the last date for commencement of manufacturing or production under section 115BAB by one year to 31^st March 2024 from 31^st March 2023.

Incentives to IFSC

The minister said that to promote the IFSC, the Government proposes to provide that income of a non-resident from offshore derivative instruments, or over the counter derivatives issued by an offshore banking unit, income from royalty and interest on account of lease of ship and income received from portfolio management services in IFSC shall be exempt from tax, subject to specified conditions.

Rationalisation of TDS Provisions

Noting that as a business promotion strategy, there is a tendency on businesses to pass on benefits to their agents, which are taxable in the hands of the agents, Smt Sitharaman said that in order to track such transactions, the Government proposes to provide for tax deduction by the person giving benefits, if the aggregate value of such benefits exceeds Rs. 20,000 during the financial year.

Rationalisation of Surcharge

Smt. Sitharaman pointed out that several works contracts terms and conditions require formation of a consortium mandatorily whose members are generally companies. She said in such cases, the income of these AOPs has to suffer a graded surcharge up to 37 per cent, which is a lot more than the surcharge on the individual companies. Therefore, she proposed to cap the surcharge of these AOP’s at 15 per cent. Further, she highlighted that the long-term capital gains on listed equity shares, units among others are liable to maximum surcharge of 15 per cent, while the other long term capital gains are subjected to a graded surcharge which goes up to 37 per cent. The Government proposes to cap the surcharge on long term capital gains arising on transfer of any type of assets at 15 per cent. The minister added that this proposal would “give a boost to the start up community and along with my proposal on extending tax benefits to manufacturing companies and start-ups reaffirms our commitment to Atma Nirbhar Bharat”.

Clarification on Health & Education Cess

Stating that the ‘Health and Education Cess’ is imposed as an additional surcharge on the taxpayer for funding specific government welfare programs, the minister, to reiterate the legislative intent, proposed to clarify that any surcharge or cess on income and profits is not allowable as business expenditure. She said that income-tax also includes surcharge and observed that it is “not an allowable expenditure for computation of business income”.

Deterrence Against Tax Evasion

Smt. Sitharaman announced that the Government proposes to provide that no set off, of any loss shall be allowed against undisclosed income detected during search and survey operations. She pointed out that It has been observed that in many cases where undisclosed income or suppression of sales among others is detected, payment of tax is avoided by setting off, of losses. This proposal would bring certainty and would increase deterrence among tax evaders, stated the minister.

***

RM/BB/BY/KAK

(Release ID: 1794147)