Union Budget Highlights 2022


 Union Budget Highlights 2022


 1. New passports:E-passports using embedded chips and futuristic tech will be rolled out.

2. For urban capacity building, support will be provided to states - mass transit, planning help, etc.

3. Transliteration of land records in 8 languages will be rolled out.

4. One Class 1 TV channel to be launched to give supplementary education to children to make up for loss of formal education due to COVID-19.

5. 5G rollout:Spectrum auction will be conducted to roll out 5G mobile services within 2022-23 by private firms.

6. Bharat Net optical fibre project to be complete in 2025.

7. All post offices to be linked with core banking solution to push financial inclusion.

8. PM Gati Shakti, inclusive development, energy transition and financing of investments.

9. 68% capital for procurement for defence will be for domestic industry.

10. Capital expenditure raised by 35.40 per cent from Rs 5.54 lakh crore to Rs 7.50 lakh crore.

11. Effective expenditure will be Rs 10.68 lakh crore, or 4.1 per cent of GDP.

12. Digital rupee using blockchain and other technology to be issued by RBI starting fiscal 2023.

13. New updated returns. Income Tax Department has made new roadmap. To correct errors by taxpayers, file updated returns within 2 years.

14. Tax rate for cooperative societies reduced to 15 per cent.

15. National Pension Scheme (NPS):Need parity between state and central government employees. Tax deduction on EPF for state government employees.

16. 30 per cent tax on digital asset transfer. Gifts of digital assets to be taxed as well. This includes any income from sale or acquisition of virtual and digital assets.

17. GST:Remarkable progress in GST but there were huge challenges

18. The government has not changed income tax rates this year.

19. Gross GST collection:Gross GST collection in January at record Rs 1,40,986 crore, possible due to rapid economic recovery.

20. Long-term capital gains:Surcharge on long-term capital gains capped at 15%.

***

Having rich experience in various profiles related to Taxation, Audit, Accounting, etc., within India and Abroad.

More Articles from Tax Grip

Extension of Income Tax due dates for the A.Y 2021-22 related to the Financial Year 2020-21

Image
The Central Board of Direct Taxes, in exercise of its power under section 119 of the Income-tax Act, 1961, provides relaxation on Income Tax due dates as per Circular 9 of 2021 dated 20 th May 2021. Sr. No. Compliances Financial Year Rules/Acts Original Due Date Extended Due Date 1 Statement of Financial Transactions (SFT) for the Financial Year 2020-21 Rule 114E of Income Tax Rules,1962 On or Before 31st May ,2021 On or Before 30th June, 2021 2 Statement of Reportable Acount   for the calendar Year 2020 Rule 114G of Income Tax Rules,1962 On or Before 31st May ,2021 On or Before 30th June, 2021 3 Statement of Deduction of Tax for the last Quarter of the   Financial Year 2020-21 Rule 31A of Income Tax Rules,1962 On or Before 31st May ,2021 ...
Read more

Tax on Capital Gain : Calculation and Indexation

Image
  CALCULATION AND INDEXATION IN CAPITAL GAIN How to calculate Capital Gain? Capital Gain arising on transfer of a short-term capital asset is short-term capital gain, whereas transfer of a long-term capital asset is long term capital gain. The tax incidence is higher in case of short term capital gain in comparison to long term capita gain. Short Term Capital Gain Full value consideration:   The consideration received or receivable by the assessee
Read more

The Technical Aspects of the Scheme of Input Tax Credit (ITC)

Image
  The technical aspects of the scheme of Input Tax Credit (ITC) A.   Who can avail ITC? Any registered person can avail credit of tax paid on the inward supply of goods or services or both, which is used or intended to be used in the course or furtherance of business. B. What are the pre-requisites for availing credit by registered person? a. He is in possession of tax invoice or any other specified tax paying document. b. He has received the goods or services. “Bill to ship” scenarios also included. c. Tax is actually paid by the supplier. d. He has furnished the return. e. If the inputs are received in lots, he will be eligible to avail the credit only when the last lot of the inputs is received. f. He should pay the supplier, the value of the goods or services along with the tax within 180 days from the date of issue of invoice, failing which the amount of credit availed by the recipient would be added to his output tax liability, with interest [rule 2(1)...
Read more

Tax on Capital Gain: Definition, Types and Tax Rates

Image
  CAPITAL GAIN TAX IN INDIA   DEFINITION, TYPES AND TAX RATES   Capital Gains Tax Capital gain can be defined as any profit or gain that is arises from the sale of a ‘capital asset.’ The gain or profit that is received comes under the ‘income’ category. Therefore, a tax needs to be paid on the income that is on transfer of a capital asset. The tax that is paid is called capital gains tax, which can either be long term or short term. As per Income Tax Act, capital gains tax is not applicable in case the individual inherits the property as there is only transfer of ownership and no sale of property. Any capital asset received on inheritance or will is not taxable. However, if the person who has inherited the property decides to sell it, tax will have to be paid on the income that has been generated from the sale. Profits or gains arising in the previous year in which the transfer took place shall be considered as income of the previous year which is charg...
Read more

New Form ITR-U Under Section 139(8A) for updated Income Tax Returns

Image
New Form ITR-U Under Section 139(8A) for updated Income Tax Returns   The CBDT has notified a new form for filing updated Income Tax returns in which taxpayers will have to give the exact reason for filing it along with the amount of income to be offered to tax. Commence from which Financial Year: The return has to be filed Under Section 139(8A) relating to the Assessment Year commencing from 01.04.2020 and subsequent assessment years. The new form (ITR-U) will be available to taxpayers for filing updated income tax returns from the Financial Year 2019-20. Eligibility of filing ITR-U: Taxpayers filing ITR-U, which can be filed within 2 years of the end of the relevant assessment year, will have to give reasons for updating the income – v      v return previously not filed, or v      v income not reported correctly, or v      v wrong heads of income chosen, or v      v reduction of carried forward loss, ...
Read more

No GST Audit (GSTR-9C) - Union Budget 2021

Image
The Union Finance Minister, Smt. Nirmala Sitharaman while presenting the Budget Speech on  1st day of February 2021, before the Parliament, proposed: Clause 101 of Finance bill to omit Sub-section (5) of section 35 of the CGST Act so as to remove the mandatory requirement of getting annual accounts audited and reconciliation statement submitted by specified professional. Clause 102 of Finance bill to substitute Section 44 of the CGST Act so as to remove the mandatory requirement of furnishing a reconciliation statement duly audited by specified professionals and provide for filing of the annual return on self-certification basis. It also provides for the Commissioner to exempt a class of taxpayers from the requirement of filing the annual return. This is to come in effect from a date to be notified later. The GSTR-9C is a reconciliation statement required to be furnished by a taxpayer whose turnover exceeds rupees two crores in a financial year while filing his ann...
Read more