List of Major Amendments made by Finance Act 2022

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Home » Direct Tax » List of Major Amendments made by Finance Act 2022

List of Major Amendments made by Finance Act 2022

List of Major Amendments made by Finance Act 2022

Section Particulars
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), 80LA Tax incentives to IFSC
12AB, 115BBI, 271AAE, 10(23C), 115TD Rationalisation of the provisions of Charitable Trust and Institutions
14A Clarification 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
37 Clarification on allowability of expenditure u/s 37(1) for Pharma Cos. & for offence under foreign law
40 Clarification that ‘Cess’ & ‘Surcharge’ is nothing but tax and needs to be disallowed u/s 40
43, 50 Reduction of Goodwill from Block Of Assets to be Regarded as ‘Transfer’
43B Clarification 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
68 Section 68 – Cash Credit – ‘Source of Source’ to be explained for loan or borrowings also.
79 Permissibility of Carry Forward And Set off of Losses Available to Erstwhile Public Sector Undertaking Pursuant to Strategic Disinvestment
79A Penalty u/s 272A increased from INR 100 per day to INR 500 per day
80CCD Incentives to National Pension System (NPS) subscribers (State government employees)
80-IAC Extension of Date of Incorporation for Eligible Start Up for Exemption
94 Rationalisation of Bonus Stripping and Dividend Stripping Provisions
115BAB Extension of Date of Commencement for New Manufacturing Companies eligible for lower 15% tax rate
115BBD Section 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) & 194S Virtual Digital Assets

New Tax Regime for Virtual Digital Assets (VDA)



Reduction of AMT payable by Co-operative Societies from 18.5% to 15%
119 Powers 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
144B Amendment to Faceless Assessment Scheme
148, 148A Rationalization 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.
154 Retroactive tax or penalty for persons allowed deduction of surcharge or cess
158AB Litigation management system to be introduced to avoid repetitive appeals by revenue involving identical issues
170, 170A, 156A Amendments applicable to Successor Entity In Case of Business Reorganizations
179 Change in the title of section 179 to “Liability of directors of private company” instead of “Liability of directors of private company in liquidation”:
194-IA Rationalization of provisions of TDS on Sale of Immovable Property in light of Stamp duty value.
194R TDS@10% on “benefit or perquisite” arising from business or exercise of profession
206AB, 206CCA Rationalization of provisions of section 206AB and 206CCA [Higher TDS and TCS for non-filers of ITR] to widen tax-base
239A Application for refund of TDS deposited on payment to non-residents to be made to Assessing Officer (Section 239A)
245MA Amendment to enable the assessing officer to pass an order giving effect to the resolution of dispute by the Dispute Resolution Committee (DRC)
263 TPO’s order is now subject to revisionary powers of revenue u/s 263
271AAB, 271AAC, 271AAD Power is given to CIT(A) to levy penalty u/s 271AAB, 271AAC, and 271AAD
272A Penalty 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
285B Widening of scope of reporting u/s 285B to include persons engaged in Specified Activities

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The summary information herein has been compiled by our expert team of tax consultants 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.