Taxmann's Income Tax Act | 2022

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SECTION

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CONTENTS PAGE

1

DIVISION ONE Income-tax Act, 1961 ◆ Arrangement of Sections

I-3

◆ Text of the Income-tax Act, 1961 as amended by the Finance Act,

2022 and Taxation Laws (Amendment) Act, 2021

◆ Appendix : Text of provisions of Allied Acts/Circulars/Regulations

referred to in Income-tax Act

◆ Validation Provisions

1.1 1.1487 1.1584 1.1587

◆ Subject Index

DIVISION TWO Finance Act, 2022 & Taxation Laws (Amendment) Act, 2021 ◆ Text of the Finance Act, 2022

2 2.3

◆ Text of the Taxation Laws (Amendment) Act, 2021

v

2.103


1.795

CH. XII - DETERMINATION OF TAX IN CERTAIN SPECIAL CASES

S. 115BBH

(h) “royalty”, in respect of a patent, means consideration (including any lump sum consideration but excluding any consideration which would be the income of the recipient chargeable under the head “Capital gains” or consideration for sale of product manufactured with the use of patented process or the patented article for commercial use) for the— (i) transfer of all or any rights (including the granting of a licence) in respect of a patent; or (ii) imparting of any information concerning the working of, or the use of, a patent; or (iii) use of any patent; or (iv) rendering of any services in connection with the activities referred to in sub-clauses (i) to (iii); (i) “true and first inventor” shall have the meaning assigned to it in clause (y) of sub-section (1) of section 2 of the Patents Act64.] 65

[Tax on income from transfer of carbon credits.

115BBG. (1) Where the total income of an assessee includes any income by way of transfer of carbon credits, the income-tax payable shall be the aggregate of— (a) the amount of income-tax calculated on the income by way of transfer of carbon credits, at the rate of ten per cent; and (b) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (a). (2) Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of this Act in computing his income referred to in clause (a) of subsection (1). Explanation.—For the purposes of this section, “carbon credit” in respect of one unit shall mean reduction of one tonne of carbon dioxide emissions or emissions of its equivalent gases which is validated by the United Nations Framework on Climate Change and which can be traded in market at its prevailing market price.] Following sections 115BBH and 115BBI shall be inserted after section 115BBG by the Finance Act, 2022, w.e.f. 1-4-2023: Tax on income from virtual digital assets. 115BBH. (1) Where the total income of an assessee includes any income from the transfer of any virtual digital asset, notwithstanding anything contained in any other provision of this Act, the income-tax payable shall be the aggregate of 64. For definition of “true and first inventor”, see Appendix. 65. Inserted by the Finance Act, 2017, w.e.f. 1-4-2018.


S. 115BBI

I.T. ACT, 1961

1.796

(a) the amount of income-tax calculated on the income from transfer of such virtual digital asset at the rate of thirty per cent; and (b) the amount of income-tax with which the assessee would have been chargeable, had the total income of the assessee been reduced by the income referred to in clause (a). (2) Notwithstanding anything contained in any other provision of this Act, (a) no deduction in respect of any expenditure (other than cost of acquisition, if any) or allowance or set off of any loss shall be allowed to the assessee under any provision of this Act in computing the income referred to in clause (a) of sub-section (1); and (b) no set off of loss from transfer of the virtual digital asset computed under clause (a) of sub-section (1) shall be allowed against income computed under any provision of this Act to the assessee and such loss shall not be allowed to be carried forward to succeeding assessment years. (3) For the purposes of this section, the word “transfer” as defined in clause (47) of section 2, shall apply to any virtual digital asset, whether capital asset or not. Specified income of certain institutions. 115BBI. (1) Where the total income of an assessee, being a person in receipt of income on behalf of any fund or institution referred to in sub-clause (iv) or any trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (via), of clause (23C) of section 10 or any trust or institution referred to in section 11, includes any income by way of any specified income, notwithstanding anything contained in any other provision of this Act, the income-tax payable shall be the aggregate of (i) the amount of income-tax calculated at the rate of thirty per cent on the aggregate of such specified income; and (ii) the amount of income-tax with which the assessee would have been chargeable had the total income of the assessee been reduced by the aggregate of specified income referred to in clause (i). (2) Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or allowance or set off of any loss shall be allowed to the assessee under any provision of this Act in computing the specified income referred to in clause (i) of sub-section (1). Explanation. For the purposes of this section, “specified income” means (a) income accumulated or set apart in excess of fifteen per cent of the income where such accumulation is not allowed under any specific provision of this Act; or (b) deemed income referred to in Explanation 4 to the third proviso to clause (23C) of section 10, or sub-section (1B) or sub-section (3) of section 11; or


Income Tax Act AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO BINDING TYPE

: : : : : :

TAXMANN TAXMANN MARCH 2022 67TH EDITION 9789356220492 PAPERBACK

Rs. 1995

Description This book covers the Amended, Updated & Annotated text of the Income-tax Act, Finance Act 2022 & Taxation Laws (Amendment) Act, 2021. The recent changes in the Income-tax Act, 1961 are as follows: u [Insertion] of 10+ new sections n [Important New Sections] include: u Taxation of Virtual Digital Asset (VDA) u TDS u/s 194S on the transfer of VDAs u TDS u/s 194R on Benefits or Perquisites u Updated Returns u Tax relief for COVID related compensation received from employers & well-wishers u [Amendments] in 70+ sections n [Important Amendments] include: u New provisions for Faceless Assessment & Reassessment u Changes in surcharge rate on long-term capital gain, AOPs & co-operative societies u Change in provisions relating to the taxation of charitable trust and institutions u Filing of application before AO to get the refund of tax deducted from the payment made to nonresident u Increase in the scope of reporting obligation cast on producers of cinematograph films The Present Publication is the 67 th Edition and amended by the Finance Act 2022 & the Taxation Laws (Amendment) Act, 2021. This book is authored by Taxmann’s Editorial Board, with the following noteworthy features: u [Coverage] of this book includes: n Division One – Income-tax Act, 1961 u Arrangement of Sections u Text of the Income-tax Act, 1961 as amended by the Finance Act, 2022 and Taxation Laws (Amendment) Act, 2021 u Appendix: Text of provisions of Allied Acts/Circulars/Regulations referred to in Income-tax Act u Validation Provisions u Subject Index n Division Two – Finance Act, 2022 and Taxation Laws (Amendment) Act, 2021 u [Annotations] under each section shows: n Relevant Rules & Forms n Relevant Circulars & Notifications n Date of enforcement of provisions n Allied Laws referred to in the section u [Legislative History of Amendments] since 1961 u Comprehensive Table of Contents u [Quick Navigation] Relevant section numbers are printed in folios for quick navigation u [Bestseller Series] Taxmann’s series of bestseller books for more than five decades u [Zero Error] Follows the six-sigma approach to achieve the benchmark of ‘Zero Error’

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