List of Major Amendments made by Finance Act 2022 | Dewan P. N. Chopra & Co.

List of Major Amendments made by Finance Act 2022

2(12A)Amendment to Definition of ‘books of account’
2(42C)Amendment to Definition of Slump Sale
10(4E), 10(4F), 10(4G), 56(viib), 80LATax incentives to IFSC
12AB, 115BBI, 271AAE, 10(23C), 115TDRationalisation of the provisions of Charitable Trust and Institutions
14AClarification that disallowance u/s 14A shall be made even if no exempt income is earned during the year.
17(2) , 56(2)(x)Exemption of amount received for medical treatment and on account of death due to Covid-19
37Clarification on allowability of expenditure u/s 37(1) for Pharma Cos. & for offence under foreign law
40Clarification that ‘Cess’ & ‘Surcharge’ is nothing but tax and needs to be disallowed u/s 40
43, 50Reduction of Goodwill from Block Of Assets to be Regarded as ‘Transfer’
43BClarification u/s 43B – Deduction not allowable on conversion of interest liability into other debt instrument.


Proviso to Section 56(2)(x)(c) – Income from Other Sources
68Section 68 – Cash Credit – ‘Source of Source’ to be explained for loan or borrowings also.
79Permissibility of Carry Forward And Set off of Losses Available to Erstwhile Public Sector Undertaking Pursuant to Strategic Disinvestment
79APenalty u/s 272A increased from INR 100 per day to INR 500 per day
80CCDIncentives to National Pension System (NPS) subscribers (State government employees)
80-IACExtension of Date of Incorporation for Eligible Start Up for Exemption
94Rationalisation of Bonus Stripping and Dividend Stripping Provisions
115BABExtension of Date of Commencement for New Manufacturing Companies eligible for lower 15% tax rate
115BBDSection 115BBD providing concessional tax rate of 15% on dividend income received by an Indian Company from a specified foreign company abolished.
115BBH, 47A, 56(2)(x) & 194SVirtual Digital Assets

New Tax Regime for Virtual Digital Assets (VDA)



Reduction of AMT payable by Co-operative Societies from 18.5% to 15%
119Powers to CBDT to provide relaxation from imposition of fee for late filing of ITRs u/s 234F:
139(8A)Filing of updated Return u/s 139(8A) within 2 years from the end of AY
144BAmendment to Faceless Assessment Scheme
148, 148ARationalization of provisions relating to assessment and reassessment
153(1) Completion of assessment under Section 143/144
153B(1)Completion of assessment in certain search or requisition cases.
154Retroactive tax or penalty for persons allowed deduction of surcharge or cess
158ABLitigation management system to be introduced to avoid repetitive appeals by revenue involving identical issues
170, 170A, 156AAmendments applicable to Successor Entity In Case of Business Reorganizations
179Change in the title of section 179 to “Liability of directors of private company” instead of “Liability of directors of private company in liquidation”:
194-IARationalization of provisions of TDS on Sale of Immovable Property in light of Stamp duty value.
194RTDS@10% on “benefit or perquisite” arising from business or exercise of profession
206AB, 206CCARationalization of provisions of section 206AB and 206CCA [Higher TDS and TCS for non-filers of ITR] to widen tax-base
239AApplication for refund of TDS deposited on payment to non-residents to be made to Assessing Officer (Section 239A)
245MAAmendment to enable the assessing officer to pass an order giving effect to the resolution of dispute by the Dispute Resolution Committee (DRC)
263TPO’s order is now subject to revisionary powers of revenue u/s 263
271AAB, 271AAC, 271AADPower is given to CIT(A) to levy penalty u/s 271AAB, 271AAC, and 271AAD
272APenalty u/s 272A increased from INR 100 per day to INR 500 per day


Failure to pay TCS to be a prosecutable offence in line with non-payment of TDS
285BWidening of scope of reporting u/s 285B to include persons engaged in Specified Activities

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The information is based on the Finance Act, 2022. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Reader should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This note is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.

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