THE FINANCE ACT, 2022

Finance Minister Smt. Nirmala Sitharaman presented her fourth regular Budget in Parliament on 1st February,2022. In her Budget speech, she emphasised four priorities, namely (i) PM Gatishakti, (ii) inclusive development, (iii) productivity enhancement & investment, sunrise opportunities, energy transition and climate action and (iv) financing of investments. The Finance Minister has given a detailed explanation of the measures that the Government proposes to take in the coming years. The Finance Minister has also introduced the Finance Bill, 2022, containing 84 sections amending various sections of the Income-tax Act. Before the passage of the Bill, 39 amendments to the Bill were introduced in Parliament. The Parliament passed the Bill with the amendments on 29th March, 2022. The Finance Act, 2022, has received the assent of the President on 30th March, 2022. By this Act, several amendments are made to the Income-tax Act, increasing the burden of compliance for tax payers. However, there are some amendments which will give some relief to taxpayers. Contrary to the Government’s declared policy , there are some amendments that will have retrospective effect. In this article, some of the important amendments in the Income tax-Act (Act) are discussed. 2. RATES OF TAXES FOR A.Y. 2023-24 2.1 There are no changes in the slabs and the rates for an Individual, H