Highlights of Union Budget 2022

On economy and policies

• For ease of doing business 2.0 – the focus will be on digital portals in infrastructure, agriculture, health, education
• Strengthening of health infrastructure through the proposed launch of a national mental health program.
• E-passports scheme will be rolled out to ease overseas travel
• Animation, Gaming, Visual Effects to be given a boost to enhance capabilities for meeting global demands
• Defence R&D will be opened up for industry, startups and academia along with DRDO-led partnerships for the design and development of defence platforms
• International Arbitration Centre will be set up in the GIFT City for the prompt settlement of disputes under international jurisprudence; off-shore banking units/ IFSC income to be exempted
• A fund for finance, agriculture and rural startups will be set up
• Logistics, mobility and transport tech overhaul will be envisioned under the GatiShakti master plan
• Integration of coastal and railway network and improve connectivity and conveyance for tourism
• Emergency Credit line to 130 lakh MSME's - extended upto March 2023 and its guarantee cover expanded by 50000 cr with a total of 5 lakh crores
• Production Linked Incentive scheme (PLI) in 14 sectors for Atmanirbhar Bharat to create 6 million jobs
• 75 digital banking systems in 75 districts by scheduled commercial banks.
• Electric Vehicles (EV) battery-swapping policy will come into place with interoperability standards.
• Accelerated Corporate exit will be processed in 6 months from the current 2 years for Voluntary liquidation

Cryptocurrency

• Digital Currency will be introduced by RBI using blockchain technology?
• Any income from the transfer of a virtual digital asset is to be taxed at the rate of 30%.
• Gift of virtual digital assets will also be taxed?
• Virtual digital assets mean inter-alia code or number or token (not being Indian or foreign currency) generated through cryptographic means or otherwise and includes Non-Fungible Tokens or any other token of similar nature

Direct Tax

• Income tax slabs for Individuals remain unchanged
• New and updated tax return forms in place
• Tax relief granted to persons with disabilities
• Start-up tax holiday extended to March 2023; this allows companies incorporated from April 1, 2016, to March 31, 2023 (as opposed to 2022) to be considered as eligible startups for tax benefits
• Litigation management - If the question of law is pending before jurisdictional HC and SC, no revenue appeal on same issues till that is decided in case of that assessee

GST

• Government has proposed to extend the time limit for various compliances from September following the end of the Financial Year to November. The extended time limit will apply to the following compliances:

1. Availment of ITC on invoice/debit note issued in an FY
2. Issuance of credit notes under GST
3. Rectification of outward supplies in GSTR-1
4. Rectification of return in GSTR-3B
5. Rectification of GSTR-8 return furnished by the e-commerce operator

• The two-way communication process in filing GST returns is scrapped.
• Transfer / Restriction on Cash Ledger