Union Budget 2022 has proposed certain clarificatory amendments to tighten income tax regulations which will have an overriding effect over several judicial pronouncements. While this makes the position of the income tax department clear, it may create problems for those taxpayers who may have claimed benefits under the judicial pronouncements in previous financial years.

Here is a look at proposals announced in Budget 2022 to tighten various income tax provisions.

Section 14A of the Income-tax Act,1961 provides that no deduction shall be allowed in respect of expenditure in relation to tax-exempt income. Over the years, disputes have arisen in respect of the issue whether disallowance under section 14A of the Act can be made in cases where no exempt income has accrued, arisen or received by the assessee during a financial year. The Central Board of Dir ..