The CBDT has put out Explanatory Notes to the provisions of the Finance Act, 2022, mostly to explain the changes and new rules about income tax (see Circular 23/2022).
These CBDT Notes contain extensive explanations of section-by-section revisions and the introduction of new provisions in the Income Tax Act and Rules that are generally relevant for FY 2022–23 and AY 2023–24.
These explanatory notes are primarily concerned with the key revisions or new income tax provisions included in the 2022 Finance Act. Furthermore, CBDT has detailed the stipulated income tax rates for AY 2023–24, as well as the rates at which tax must be deducted at source and advance tax must be paid for the fiscal year 2022–23. It should be noted that the Finance Minister has previously clarified the majority of these concerns in the ‘Memorandum Explaining the Provisions in the Finance Bill 2022′ when presenting the Budget 2022 or say Tax Proposals for AY 2022-23. However, these Explanatory Notes address the subsequent changes in the tax proposals as well.
This circular or publication has a short summary of all of the changes that the Finance Act of 2022 made to the Income Tax Act or Rules, along with short explanations from the CBDT, on the following issues:
List of Sections of the Income Tax Act, 1961, as amended by the Finance Act (FA) 2022
| Sections | Particulars |
| 2 | Definitions |
| 10 | Incomes not included in total income |
| 11 | Income from property held for charitable or religious purposes. |
| 12A | Conditions for applicability of sections 11 and 12 |
| 12AB | Procedure for fresh registration |
| 13 | Section 11 not to apply in certain cases |
| 14A | Expenditure incurred in relation to income not includible in total income |
| 17 | “Salary”, “perquisite” and “profits in lieu of salary” defined |
| 35 | Expenditure on scientific research |
| 37 | General |
| 40 | Amounts not deductible |
| 43B | Certain deductions to be only on actual payment |
| 50 | Special provision for cost of acquisition in case of depreciable asset |
| 56 | Income from other sources |
| 68 | Cash credits |
| 79 | Carry forward and set off of losses in case of certain companies |
| 79A | No set off of losses consequent to search, requisition and survey |
| 80CCD | Deduction in respect of contribution to pension scheme of Central Government |
| 80DD | Deduction in respect of maintenance including medical treatment of a dependent who is a person with disability |
| 80-IAC | Special provision in respect of specified business |
| 80LA | Deductions in respect of certain incomes of OBUs/ IFSCs |
| 92CA | Reference to TPO |
| 94 | Avoidance of tax by certain transactions in securities |
| 115BAB | Tax on income of new manufacturing domestic companies |
| 115BBD | Tax on certain dividends received from foreign companies |
| 115BBH | Tax on Income from VDA |
| 115BBI | Specified income of certain institutions |
| 115JC | Special provisions for payment of tax by certain persons other than a company |
| 115JF | Interpretation in this Chapter (Chapter XII-BA) |
| 115TE | Tax on accreted income |
| 115TD | Interest payable for non-payment of tax by trust or institution |
| 115TF | When trust or institution is deemed to be assessee in default |
| 119 | Instructions to subordinate authorities |
| 132 | Search and seizure |
| 132B | Application of seized or requisitioned assets |
| 133A | Power of survey |
| 139 | Income Tax Return (ITR) |
| 140B | Tax on updated ITR |
| 143 | Assessment |
| 144 | Best Judgment Assessment |
| 144B | Faceless Assessment |
| 144C | Reference to DRP |
| 148 | Issue of notice where income has escaped assessment |
| 148A | Conducting inquiry, providing opportunity before issue of notice u/s 148 |
| 148B | Prior approval for assessment, reassessment or recomputation in certain cases. |
| 149 | Time limit for notice |
| 153 | Time limit for completion of assessment/ reassessment/ recomputation |
| 153B | Time limit for completion of assessment u/s 153A |
| 155 | Other amendments |
| 156A | Modification and revision of notice in certain cases. |
| 158AA | Procedure when an identical question of law is pending before Supreme Court in an appeal by revenue |
| 158AB | Procedure where an identical question of law is pending before High Courts or Supreme Court |
| 170 | Succession to business otherwise than on death |
| 170A | Effect of order of Tribunal or Court in respect of Business Reorganisation |
| 179 | Liability of directors of private company |
| 194-IA | Payment on transfer of certain immovable property other than agricultural land |
| 194-IB | Payment of rent by certain individuals or HUF |
| 194R | Deduction of tax on benefit or perquisite in respect of business or a profession |
| 194S | Payment on transfer of VDA |
| 201 | Consequences of failure to deduct or pay tax |
| 206AB | Special provision for TDS for non-filers of ITR |
| 206C | Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc. |
| 206CCA | Special provision for TCS for non-filers of ITR |
| 234A | Interest for defaults in furnishing ITR |
| 234B | Interest for defaults in advance tax payments |
| 239A | Refund for denying liability to deduct tax in certain cases |
| 245MA | DRC |
| 246A | Appealable orders before CIT (Appeals) |
| 248 | Appeal by a person denying liability to deduct tax in certain cases |
| 253 | Appeals to the ITAT |
| 255 | Procedure of ITAT |
| 263 | Revision of orders prejudicial to revenue |
| 271AAB | Penalty where search has been initiated |
| 271AAC | Penalty in respect of certain income |
| 271AAD | Penalty for false entry, etc., in books of account |
| 271AAE | Benefits to related persons |
| 271C | Penalty for TDS failure |
| 272A | Penalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections, etc. |
| 276AB | Failure to comply with the provisions of sections 269UC, 269UE and 269UL |
| 276B | Failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B |
| 276CC | Failure to furnish ITR |
| 278A | Punishment for second and subsequent offences |
| 278AA | Punishment not to be imposed in certain cases |
| 285B | Submission of statements by producers of cinematograph films or persons engaged in specified activity |
CBDT Income Tax Circular 23/2022 dt. 03/11/2022: Explanatory Notes to the Provisions of the Finance Act 2022
CBDT Income Tax Circular 2/2023 dt. 06/02/2023: Corrigendum to CBDT Circular 23/2022 dt.03/11/2022 regarding Explanatory Notes to Finance Act, 2022
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