Key Takeaways from the Union Budget 2022

The Finance Minister in her budget today was focused around Fintech, digital economy, digital banking and stretching the infrastructure of the country.

The 5 key takeaways from the Union Budget 2022:

• Whilst the digital rupee is trending everywhere, The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was not included in the tentative list of 15 proposed legislations that might be tabled before the Parliament, this budget session;
• To enable ease of doing business in SEZ units, the government is looking to replace The Special Economic Zone Act, 2005, with a new legislation that will cover all large existing and new industrial enclaves to optimally utilise available infrastructure and enhance competitiveness of exports;
• In her speech the Finance Minister said today that, income from transfer of virtual digital assets to be taxed at 30%, no  deductions in respect if any expenditure or allowance while computing such income, except cost of acquisition. This further means that no losses can be offset while computing such taxable digital income. It is currently unclear if NFT’s would be included in the definition of ‘virtual digital assets’;
• To help the economy recover from the effects Covid-19 and the pandemic, in the Union Budget today, The Emergency Credit Line Guarantee Scheme has been extended for the hospitality and related segments till March 2023, expected to reach over 1.3 crore MSME’s;
• With amendments proposed to the Insolvency and Bankruptcy Code, 2016, for more efficient dispute resolution and to enable cross-border insolvency resolution. It is great that the issue will be tabled in the parliament this budget session, as it will take at least a year or two for these proposed amendments to be effected and implemented. Lastly, it needs to be seen as to how such cross-border transactions, will be taxed.