Explanatory Notes on Finance Act 2022: CBDT Circular 23/2022

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.

Explanatory Notes to the Provisions of the Finance Act 2022: CBDT Circular 23/2022

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

10Incomes not included in total income
11Income from property held for charitable or religious purposes.
12AConditions for applicability of sections 11 and 12
12ABProcedure for fresh registration
13Section 11 not to apply in certain cases
14AExpenditure incurred in relation to income not includible in total income
17“Salary”, “perquisite” and “profits in lieu of salary” defined
35Expenditure on scientific research
40Amounts not deductible
43BCertain deductions to be only on actual payment
50Special provision for cost of acquisition in case of depreciable asset
56Income from other sources
68Cash credits
79Carry forward and set off of losses in case of certain companies
79ANo set off of losses consequent to search, requisition and survey
80CCDDeduction in respect of contribution to pension scheme of Central Government
80DDDeduction in respect of maintenance including medical treatment of a dependent who is a person with disability
80-IACSpecial provision in respect of specified business
80LADeductions in respect of certain incomes of OBUs/ IFSCs
92CAReference to TPO
94Avoidance of tax by certain transactions in securities
115BABTax on income of new manufacturing domestic companies
115BBDTax on certain dividends received from foreign companies
115BBHTax on Income from VDA
115BBISpecified income of certain institutions
115JCSpecial provisions for payment of tax by certain persons other than a company
115JFInterpretation in this Chapter (Chapter XII-BA)
115TETax on accreted income
115TDInterest payable for non-payment of tax by trust or institution
115TFWhen trust or institution is deemed to be assessee in default
119Instructions to subordinate authorities
132Search and seizure
132BApplication of seized or requisitioned assets
133APower of survey
139Income Tax Return (ITR)
140BTax on updated ITR
144Best Judgment Assessment
144BFaceless Assessment
144CReference to DRP
148Issue of notice where income has escaped assessment
148AConducting inquiry, providing opportunity before issue of notice u/s 148
148BPrior approval for assessment, reassessment or recomputation in certain cases.
149Time limit for notice
153Time limit for completion of assessment/ reassessment/ recomputation
153BTime limit for completion of assessment u/s 153A
155Other amendments
156AModification and revision of notice in certain cases.
158AAProcedure when an identical question of law is pending before Supreme Court in an appeal by revenue
158ABProcedure where an identical question of law is pending before High Courts or Supreme Court
170Succession to business otherwise than on death
170AEffect of order of Tribunal or Court in respect of Business Reorganisation
179Liability of directors of private company
194-IAPayment on transfer of certain immovable property other than agricultural land
194-IBPayment of rent by certain individuals or HUF
194RDeduction of tax on benefit or perquisite in respect of business or a profession
194SPayment on transfer of VDA
201Consequences of failure to deduct or pay tax
206ABSpecial provision for TDS for non-filers of ITR
206CProfits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc.
206CCASpecial provision for TCS for non-filers of ITR
234AInterest for defaults in furnishing ITR
234BInterest for defaults in advance tax payments
239ARefund for denying liability to deduct tax in certain cases
246AAppealable orders before CIT (Appeals)
248Appeal by a person denying liability to deduct tax in certain cases
253Appeals to the ITAT
255Procedure of ITAT
263Revision of orders prejudicial to revenue
271AABPenalty where search has been initiated
271AACPenalty in respect of certain income
271AADPenalty for false entry, etc., in books of account
271AAEBenefits to related persons
271CPenalty for TDS failure
272APenalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections, etc.
276ABFailure to comply with the provisions of sections 269UC, 269UE and 269UL
276BFailure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B
276CCFailure to furnish ITR
278APunishment for second and subsequent offences
278AAPunishment not to be imposed in certain cases
285BSubmission 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

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Finance Act, 2022 notified by Govt.

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