Decoding The Changes To Direct Tax Laws

The Union Budget has proposed some amendments to the direct tax laws. While they are welcome, the government needs to iron out a few issues

- Dinesh Kanabar And Raj Verma

THE UNION BUDGET is keenly watched as a statement on the health of the economy, the direction for the year ahead in terms of policy announcements and—very important—for the changes to the tax regime. Over time, the changes to indirect taxes have become less relevant as these are dealt with by the GST Council. But amendments to direct taxes become very relevant.

From the finance minister’s speech, the Finance Bill, 2022, seems to be relatively benign with not too many tax proposals. But on reading the fine print, we find many changes, some of considerable significance. Before I deal with some of the key ones and what they portend for us, let me compliment the FM for the direction of the Union Budget with respect to spending on infrastructure and revival of the capital spend cycle. These are the need of the hour and if implemented as budgeted, should help spur the economy and provide an impetus to employment generation. Let me now deal with a few of the important tax proposals.