• The income arising from the transfer of virtual digital assets shall be taxed at the rate of 30%. Further, no deduction under Chapter VI-A or an exemption under Section 54F shall be allowed from such capital gains. However, relief under Section 87A can be claimed.
• New provision to file updated return within 2 years of relevant assessment year.
• No change in income tax slab and standard deduction limit.
• Alternate minimum tax for cooperative societies down from 18.5% to 15%
• Tax deduction limit for state govt employees to NPS raised from 10% to 14% of salary.
• Surcharge on Corporate tax pruned from 12% to 7%. Surcharge on transfer of long-term capital gains tax capped at 15%
• Tax exemption to start-ups extended up to March 2023.

Key-highlights of GST Proposals

1. The time limit for the following compliances is extended from 30th September till 30th November of next year:

• To avail Input Tax Credit u/s 16(4).
• Any rectification of error in GSTR-1/ GSTR-3B.
• Credit Notes in respect of supply made in a financial year can be issued.

2. Utilization of Input Tax Credit and Electronic Credit Ledger Balance

• Input Tax Credit can be availed only if the same is not restricted in GSTR-2B.
• Allows transfer of amount available in Electronic cash ledger of a registered person to the Electronic cash ledger of a distinct person
• Prescribes the supplies as well as the manner, time, conditions and restrictions for communication of details of inward supplies and input tax credit to the recipient by means of an auto-generated statement and to do away with two-way communication process in return filing.
• Provides for prescribing the maximum proportion of output tax liability which may be discharged through the electronic credit ledger.
• Section 41 is also revamped to remove the references to provisional Input Tax Credit claims and prescribes self-assessed Input Tax Credit claims with conditions.
• Refund claim of any balance in the electronic cash ledger shall be made available

3. Provisions for Different Types of Taxpayers

• Composition Taxpayer’s Registration can be cancelled suo-moto if they have not filed their GSTR-4 return beyond 3 months from the due date.
• The due date for filing return by Non-resident taxable person is prescribed as 13th day of subsequent month.

4. Other Provisions relevant to Indirect Taxation

• Amendment in the levy of late fee for delayed filing of TCS returns.
• Levy of interest on Input Tax Credit wrongly availed and utilized. (However, Interest will not be levied if ITC is not utilized).
• Rate of Interest prescribed as 18% in all cases.
• Concessional duty on import of capital goods to be phased out.
• Duty on unpolished diamonds to be reduced to 5%
• Customs duty on steel scrap extended by a year

Infrastructure Developments

• Total expenditure in Financial Year 2023 estimated at Rs 39.45 trillion; total resources mobilization to be Rs 22.84 trillion other than borrowing.
• Revised Fiscal Deficit 6.9% of GDP in Financial Year 2022 as against 6.8% in Budget estimates, Fiscal deficit at 6.4% in Financial Year 2023

• GDP growth for Financial Year 2022 expected to be 9.2%, the highest for any large economy.
• Production Linked Incentive scheme in 14 sectors for Aatmanirbhar Bharat to create 6 million jobs, additional allocation of Rs 19,500 crore for PLI in solar PV module manufacturing.
• Promoting Fintech and digital economy a focus area for this Budget.
• 75 digital banking systems in 75 districts by scheduled commercial banks.
• Insolvency and Bankruptcy Code (IBC) to be amended to improve efficiency of resolution process including cross border.
• Core Banking Services to start in Post offices.
• PM Gati-shakti masterplan has scope to enhance Multimodal communication through 7 engines, 2000 km of rail network to be brought under KAVACH & Highway network to grow by 25,000 km in Financial Year 2023.
• Contracts for implementation of multimodal logistics parks at 4 locations to be awarded in 2022-23, in Public Private Partnership Mode.
• ECLGS (Emergency Credit Line Guarantee Scheme) to be extended up to March 2023, guaranteed cover extended by another Rs 50,000 crore
• 8 million new dwelling in rural, urban areas to be completed under PM Awas Yojana
• Rs 2.37 trillion worth of Minimum Support Prices direct payments to wheat and paddy farmers.
• Rs 2 trillion outlay for MSMEs, additional loans for 13 million MSMEs.
• Rs 48,000 crore allocated to housing projects under PM Housing Scheme for Financial Year 2023, Rs 1,500 crore allocated for development of the Northeast in Financial Year 2023.
• Desh stack e-portal to be launched to promote Digital Ecosystem for Skilling and Livelihood.
• Electric Vehicles battery-swapping policy to be brought out with interoperability standards.
• 68% of capital outlay for Domestic defense industry.