Medilytix Bureau:
No change to corporate or personal income tax rates; surcharge on specific AOPs and long-term capital assets transfer capped to 15 percent.
Tax holiday extended for start-ups incorporated up to 31 March 2023 and for new manufacturing companies commencing operations by 31 March 2024.
Virtual digital assets (VDA): Gains taxed at 30 percent; deduction allowed only for cost of acquisition; benefit of set-off and carry forward of losses not available; deemed gift tax provisions to apply; tax deduction at source (TDS) at 1 percent introduced.
Retrospective amendment to deny deduction of any surcharge or cess paid on income and profits.
Expenditure to provide any benefit or perquisite to any person to be disallowed if its acceptance is in violation of any laws.
International Financial Services Centre (IFSC): Income-tax exemption expanded to, inter alia, specified income of non-resident from lease of a ship to IFSC units; income of a non- resident from transfer of specified derivative instruments.
Concessional tax regime on foreign sourced dividends to be withdrawn from FY22.
Option to file an updated income-tax return on payment of additional taxes.
Special Economic Zone Act to be replaced with a new legislation to enable the States’ partnership in development of enterprise and service hubs, optimally utilise the available infrastructure, and enhance export competitiveness.
Concessional customs duty on capital goods and project imports to be gradually phased out to support growth of the domestic capital goods sector.
