Finance minister Sitharaman on Tuesday unveiled budget for fiscal year 2022-23 with an aim to boost growth amid continued disruption from Covid-19 and rising inflation. The Biggest focus was on infrastructure spending. Taxpayers can now file an updated return within 2 years from the relevant assessment year. However, there has been no change in personal income tax slabs. Income from transfer of any virtual digital asset shall be taxed at the rate of 30%. Besides, corporate surcharge has been reduced from 12% to 7%. Get live updates of budget 2022 along with highlights and analysis on Times of India.
Govt to bring battery swapping policy to promote electric vehicles
Finance minister Sitharaman on Tuesday announced that the government will bring a battery swapping policy to boost use of electric vehicles in the country in view of space constraints for setting up charging stations. "Considering the constraint space in urban areas for setting up (electric vehicles) charging stations, a battery swapping policy will be brought out and interoperability standards will be formulated," Finance minister said in her Budget speech in the budget.
Rs 60,000 crore allocated to provide tap water connections to 3.8 crore households: FM
Rs 60,000 crore has been allocated to provide tap water connections to 3.8 crore households in 2022-23. Presenting the Union Budget 2022-23, she also informed that the government has decided to extend the period of incorporation by one year up to March 31, 2023, for startups to avail tax incentives.
IT Returns can now be revised for omission, mistakes, says Govt
Tax returns can now be revised for omission and mistakes, including declared income not reported. The changes can be made through a one-time window till two years from the end of the assessment year on payment of tax.
Surcharge on transfer of any long-term capital gains has been capped at 15 per cent.
The Minimum Alternate Tax rate for cooperatives at 18.5 per cent has been reduced to bring it with parity of the rate for corporates. Also, the surcharge for cooperatives has been reduced to 7 per cent from 12 per cent for total income ranging between Rs 1-10 crore.
The Budget has also extended the timelines for benefits under the new corporate tax regime. The government had announced a 15 per cent corporate tax rate for newly incorporated manufacturing companies till 31-3-2023, which has now been extended till 31-3-2024. The period of incorporation for startups to avail tax benefits has also been extended by a year to March 31, 2023.
Reduction of surcharge on unlisted shares from 28.5% to 23%
In a move that will ease exits from startups and Unicorns, the Finance Minister announced reduction of surcharge on unlisted shares from 28.5 per cent to 23 per cent.
Crypto, NFT comes under tax net
The Budget has proposed taxing virtual assets at 30%. Finance Minister Sitharaman said that it cannot be mentioned as a replacement of any other income and 1% TDS to be charged further on payments made using digital assets to keep a track of transactions.
Finance minister proposes increase of employees’ tax deduction limit to 14%
While presenting the Union Budget, proposed no change in income tax slabs. She, however, proposed that both Center and states government employees’ tax deduction limit should be increased from 10% to 14%. The move, she said, will help the social security benefits of state government employees and bring them to par with the Central government employees.
The Finance Minister also proposed a reduction in corporate surcharge and said that the transfer of any virtual digital asset shall be taxed at the rate of 30%. Corporate surcharge to be reduced from 12% to 7%. I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30%. No deduction in respect of any expend Economic Survey: Key challenges and concerns for Indian economy
Despite a projected 9.2 per cent growth in GDP in FY22 to above pre-pandemic levels, the Indian economy continues to face a slew of structural challenges that existed prior to the pandemic and new challenges brought on by Covid-19. Inflation is the most important headwind. The Survey notes that supply chain disruptions and slow economic growth have contributed to an increase in inflation. The withdrawal of stimulus in developed economies in the upcoming fiscal is likely to affect capital flows into the country.
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