Budget 2022 - Tax And Policy Highlights: EY Analysis

The Legal Library section collates quality and in-depth reports on regulatory developments, court rulings and policy changes authored by India’s top law firms and consultants. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of law and policy..EY Update.In this alert, EY has outlined the consolidated tax and policy highlights announced by finance minister Nirmala Sitharaman in the budget.Macro fiscal11.1% nominal gross domestic product growth rate assumed for FY23 (budget estimate)8-8.5% real GDP growth assumed for FY23 (Economic survey)9.6% growth in gross tax revenues with an assumed buoyancy of 0.9 for FY2324.5% growth in capital expenditure in FY236.4% fiscal deficit target for FY23Corporate taxNew regime for taxation of Virtual Digital Assets introducedAdditional incentives introduced to incentivise operations in IFSCRate of surcharge on long term capital gain capped at 15%Clarifications for disallowance of health and education cess, expense incurred for exempt income and expenses connected with offence prohibited by law and compounding of offencesLast date for incorporation for start-ups and commencement of manufacturing or production extended upto March 31 2023 and March 31, 2024, respectivelyOption to assesses and revise return to pay additional tax on undisclosed incomeSEZ regime to be replaced with a new legislationTransaction TaxScope of 'bonus stripping' and 'dividend stripping' expandedWithholding on purchase of immovable property made applicable on higher of stamp duty value or sale considerationIndirect taxGST:Interest on input tax credit wrongly availed and utilised leviable @ 18% effective July 01, 2017Time limit for claiming ITC, issuance of credit note and rectification of errors relaxed till November 30 of following financial yearCustoms:Around 350 custom duty exemptions withdrawn and 40 exemptions relating to capital goods and project imports to be gradually phased outCustoms tariff structure simplifiedOfficers of Directorate of Revenue Intelligence, audit and preventive formation considered as proper officer to validate actions taken by themPersonal taxUpdated tax return introduced to provide an opportunity to taxpayers to correct omissions/ mistakesSurcharge on all long-term capital gains capped at 15%Increase in deduction for employer contribution to National Pension Scheme for state government employeesRelief for persons with disabilityExemption for Covid-19 related ex-gratia payments for medical treatment/ death .Click on the attachment to read the full report:.DISCLAIMERThis alert does not constitute legal advice and is for information purpose only. This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Budget 2022 - Tax And Policy Highlights: EY Analysis

Budget 2022 - Tax & Policy Highlights: EY Analysis

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