CBDT released Explanatory Notes to provisions of the Finance Act, 2022

Explanatory Notes to provisions of the Finance Act, 2022

1. Introduction 

1.1 The Finance Act, 2022 (hereafter referred to as 'FA 2022') as passed by the  Parliament, received the assent of the President on 30lh March, 2022 and has been  enacted as Act No.6 of 2022. 

1.2 This circular explains the substance of the provisions of the FA 2022 relating to  direct taxes. 

2. Changes made by FA 2022 

2.1 The FA 2022 has,-

(i) specified the existing rates of income-tax for the assessment year 2022-23 and the  rates of income-tax on the basis of which tax has to be deducted at source and advance  tax has to be paid during financial year 2022-23; and 
(ii) amended sections of the Income-tax Act, 1961 ('the Act'). 

3. Rate structure 

3.1 Rates of income-tax in respect of incomes liable to tax for the assessment year 2022-23. 

3.1.1 Part I of First Schedule to the FA 22 specifies the rates of income-tax in respect of  incomes of all categories of assessees liable to tax for the assessment year 2022-23.  These rates are the same as those laid down in Part III of the First Schedule to the  Finance Act, 2021 for the purposes of computation of "advance tax", deduction of tax at  source from "Salaries" and charging of tax payable in certain cases during the financial  year 202 1-22. Main features of the rates specified in the said Part I are as follows: 

3.1.2 Individual, Hindu undivided family, association of persons, body of individuals  or artificial juridical person. 

Paragraph A of Part I of the First Schedule specifies the rates of income-tax in the case of  every individual, Hindu undivided family (HUF), association of persons, body of individuals  or artificial juridical person (other than a co-operative society, firm, local authority and  company) as under:

To know more in details, find the enclosed circular