Income Tax changes
• Taxation of Cryptos & Virtual Digital Assets : Income from transfer of such assets to be taxed at 30%. No deductions (except cost of purchase) and set off of losses for such income. Gift of virtual assets taxable in hands of receiver. TDS at 1% on transfer of virtual digital assets beyond specified consideration.
• New option for Corrected Income Tax Return to correct omissions of Income within 2 years from end of relevant Assessment Year.
• Extension of Concessional Tax rate for domestic manufacturing Companies commencing production by 31.3.2024.
• Extension of Tax Holiday for eligible startups extended by 1 year.
• Surcharge for Long-Term Capital Gain capped at 15% arising from sale of any capital asset (earlier only for listed equity shares).
• No Set off of losses against undisclosed income found during IT Search or Survey.
• New TDS on Business Promotion: Business promotion expenses including gifts above INR 20k p.a. subject to TDS.
• AMT and Surcharge slashed for Co-operatives: AMT now at 15% (Earlier 18.5% ) and Surcharge now at 7% (earlier 12 % for Income between 1 crore to 10 Crores) .
• Surcharge for Association of Persons (AOP) reduced from 37% to 15 %.
Other announcements
• Capital outlay increased by 35% from 5.54 lakh cr to 7.5 lakh cr. Enhanced financial feasibility of PPP model to encourage private participation.
• Introduction of Digital Rupee by RBI using blockchain technology in 22-23.
• Fiscal deficit estimated at 6.4% in 22-23 (approximately Rs. 15 lakh cr).
• e-Passports with embedded chips to be rolled out in 22-23.
• Voluntary winding of companies to be speeded up from 2 years to 6 months.
• Drones to get a boost: Use of kisan drones for digitization of land records & ‘Drone as a service’ to be encouraged.
• Covid Credit line Extension : Emergency Credit Guarantee Scheme during Covid extended to March 2023. 5 lakh crores set aside for hospitality.
• Big domestic push for defence sector: Local procurement increased to 68% .
• Post office modernization: POs to come under Core Banking system.
• EV policies: Special mobility zones to be introduced, battery as a service encouraged.
• Affordable housing – 18 lakh affordable houses by 2023.
Author
Shyam Sathy
Anjana Shankar
Sarath Babu B
