UNION BUDGET 2022 – Key Updates On Business, Startup, MSME, TAX segments

General on Business

An international arbitration centre will be set up at GIFT City to provide faster dispute resolution
Center for accelerated corporate exit to be set up. The process is to be digitized and aims to bring the corporate exit time within 6 months (instead of 2 years). Relief for companies looking for voluntary winding up
SEZ , Special Economic Zone act will be replaced to offer more participation of state Governments

Electric Vehicles

Startup Business

Tax incentives for newly incorporated companies – the period of incorporation of eligible startups by one year to 31st March 2023 (earlier announced was 31.03.2022)
The concessional tax regime for manufacturing companies (15%) has been extended to 31.03.2024 from 31.03.2023

Digital Currency (Crypto / Blockchain)

Digital currency with blockchain technology will be issued by Reserve Bank of India

Direct Taxes

Taxpayers can now file updated returns within 2 years from the assessment year
Tax for Virtual Digital Assets – Taxed t 30%. No expenses or set off shall be allowed
Gift of Virtual Digital Assets will also be taxed
Health & Education surcharges additionally on taxes
No set-offs allowed on undisclosed income found search operations

Manufacturing Industries , MSMES

Defence R&D will be opened for startups and academia. Private industries will be given opportunities to develop military platforms in collaboration with DRDO
Electronics Manufacturing of wearables, hearables, mobile phones, parts and camera modules are given duty exemption
Jewellery & Gems – Import duty on cut and polished diamonds and gemstones will be reduced to 5% ( from present 7.5%)while on sawn diamond to nil
Extended the customs duty exemption on steel scrap by one year. This is expected to support the secondary steel producers in the MSME sector
Blended fuel support – Unblended fuel will attract Rs 2 / litre excise duty