Presently, there is a cap of 15% surcharge on long term capital gain on the sale of listed equity or mutual funds. From 1st April 2022, this cap will be extended to long term capital gain on all assets. Earned by Resident taxpayers (other than Companies and Firms) arising on transfer of securities irrespective of the amount of capital gains as against the current higher rate of surcharge of 37% and 25%.
A new provision is inserted that allows the taxpayers to file an updated return for errors or mistakes done in income tax returns. Taxpayers can now file an updated return within two years from the end of the relevant assessment year.
The Central Board of Direct Taxes (CBDT) has decided to implement Income-tax (25th Amendment) Rule 2021 from April 1. It means that a cap of tax-free contributions up to ₹2.5 lakh is being imposed on the Employee Provident Fund (EPF) account. If the contribution is made above this, then the interest income will be taxed.
The Central Government on the recommendations of the GST Council has amended Notification No. 13/2020-CT dated. 21.03.2020 to reduce the threshold limit of aggregate turnover for the applicability of e-invoicing provisions from ` 50 crore to ` 20 crore. The said amendment shall become effective from 1st April 2022
A taxpayer is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs 1 crore in the financial year. However, a taxpayer may be required to get their accounts audited in certain other circumstances. We have categorised the various circumstances in the tables mentioned below:
Amendments in the above provision:
Finance Act 2020: The threshold limit of Rs 1 crore turnover for a tax audit is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments.
Finance Act 2021:With effect from 1st April 2021 from AY 2022-23( FY 2021-22), the threshold limit of Rs 5 crores is increased to Rs 10 crores in case cash transactions do not exceed 5% of the total transactions.