10 things India Inc should know

*Startups continue to be the blue-eyed boys. The tax holiday of 100% of profits (for a b lock of 3 years in first 10 years of incorporation) is extended by one more year. Startups incorporated till March 31, 2024 will enjoy this tax holiday
*Carry forward of business loss of startups is extended to 10 years (from earlier 7 years) provided all the shareholders in the year of loss continue to remain invested even i n the year of setoff
*Delay MSME payments at your peril. Payments made to MSMEs beyond the prescribed time-limit will be allowed as business deduction in the hands of the payer entity only in the year of actual payment
*Gaming is no longer fun. Online gaming companies will need to apply TDS at 30% on “net winnings” without considering the exemption threshold of Rs 10,000 currently available. TDS will trigger at the end of the year or at the time of withdrawal of winnings by the user, whichever is earlier
*Appeal disposal to be faster now. A new post of Joint Commissioner (Appeals) is proposed to hear and decide appeals of smaller taxpayers. This would reduce the backlog of pending appeals at the first appellate level
*More time for completing assessments. Time limit extended by three months to 12 months from the end of the assessment year, f or 2021-22 and thereafter
7 *ars from the year of TDS). By doing so, they will be able to claim TDS credit when the income was disclosed in an earlier year, but the tax was withheld in a later year. Interest on refund arising from such credit, however, to be allowed only from the date of rectification application and not from the date of TDS deduction
*Brace yourself for Angel Tax 2. India Inc (except startups) will suffer tax on premium received in excess of ‘fair market value’ even from non-resident investors. This was pre viously taxable only if it was received from resident subscribers
*TDS becomes more tedious. TDS at 10% to apply on interest on listed debentures from April 1, 2023. Also, default in TDS in respect of providing benefits or perquisite in respect of business or profession, transfer of virtual digital assets and online gaming winnings to attract penalty and prosecution
*Intangible assets to have zero value for tax purposes. Deeming fiction proposed b e inserted to prescribe the cost of acquisition of intangible assets acquired on or after April 1, 2023 to be ‘Nil’. As a result, there will b e a higher component of taxable capital gain on transfer
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