Budget 2022 Highlights in 20 simple points

 

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

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