The Budget 2022 is for digital India, a step to boost the start-up  in India. Govt has also opened defence sector for industry, 25% R&D budget is for start-ups and academia to enable growth of the defence infrastructure with the help of technology companies.

1. Following amendment proposed in Income Tax
   1. Amendment section 14A (relating to expenditure incurred in relation to income not includible in total income). It is proposed to amend sub-section (1) of the said section to provide that notwithstanding anything to the contrary contained in this Act, for the purpose of computing the total income, no deduction shall be allowable in respect of expenditure incurred in relation to income which does not form part of the total income
   2. Amendment in section 56 (relating to income from other sources). The existing provisions provides that where any person receives, in any previous year, from any person or persons any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum shall be the income of the person receiving such sum. Proviso to the said clause provides for certain exclusions which shall not be part of the income specified in the clause. It is proposed to insert two new clauses to provide that
      1. any sum of money received by an individual, from any person, in respect of any expenditure actually incurred by him on his medical treatment or treatment of any member of his family, in respect of any illness related to COVID-19 subject to such conditions, as may be notified by the Central Government in this behalf, shall not be the income of such person;
      2. any sum of money received by a member of the family of a deceased person, from the employer of the deceased person, or from any other person or persons to the extent that such sum or aggregate of such sums does not exceed ten lakh rupees,
   3. Amendment in section 80-IAC ( relating to special provision in respect of specified business)
      To boost the start-ups One year extension of tax breaks is given. Under the existing provision eligible start-up is given One hundred percent deduction for 3 consecutive years , provided it should be incorporated before 1 April 2022. Proposal is given to extend the time line till 1st April 2023.
   4. Amendment in Section 115JC (relating to special provisions for payment of tax by certain persons other than a company)
      It is proposed to substitute the said sub-section (4), and provide where the person referred to therein, is a co-operative society, it shall be liable to pay income-tax on such total income at the rate of fifteen per cent instead of eighteen and one-half per cent.
   5. New section 194R is inserted (relating to deduction of tax on benefit or perquisite in respect of a business or profession}
      It provide that the person responsible for providing to a resident, any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession by such resident, exceeding twenty thousand rupees shall, before providing such benefit or perquisite, as the case may be, to such resident, ensure that tax has been deducted in respect of such benefit or perquisite at the rate of ten per cent. of the value or aggregate of value of such benefit or perquisite however the provisions of the section shall not apply to a person being an individual or a Hindu undivided family, whose total sales, gross receipts or turnover does not exceed one crore rupees in case the of business or fifty lakh rupees in the case of profession, during the financial year immediately preceding the financial year in which such benefit or perquisite, as the case may be, is provided by such person.
   6. New section 194S is inserted (relating to payment on transfer of virtual digital asset )
      It provide deduction of TDS on payment relating to transfer of virtual digital asset. It proposed sub-section (1) seeks to provide that any person responsible for paying to a resident any sum by way of consideration for transfer of a virtual digital asset shall, at the time of credit of such sum to the account of the resident or at the time of payment of such sum by any mode, whichever is earlier, deduct an amount equal to one per cent. of such sum as income-tax thereon. However no tax shall be deducted in a case, where–– (a) the consideration is payable by a specified person and the value or aggregate value of such consideration does not exceed fifty thousand rupees during the financial year; and (b) the consideration is payable by any person other than a specified person and the value or aggregate value of such consideration does not exceed ten thousand rupees during the financial year.
   7. Amendment in section 201 (consequences of failure to deduct or pay)
      It is proposed to insert a new proviso to the said sub-section to provide that where an order is made by the Assessing Officer for the default referred to in sub-section (1), the interest shall be paid by the person in accordance with such order.
   8. Amendment the section 271AAB (relating to penalty where search has been initiated)
      It is proposed to extend the powers to levy penalty to Commissioner (Appeals) also
   9. Amendment the section 271AAD (relating to penalty for false entry, etc. in books of account)
      It is proposed to extend the powers to levy penalty to Commissioner (Appeals) also. Same is proposed with 271AAC ( relating to penalty in respect of certain income)
2. Following amendment proposed in Central Goods and Services Tax Act
   1. Amendment in clause (c) of the said sub-section (2) of section 29
      To provide for prescribing continuous tax periods for which return has not been furnished, which would make a registration liable for cancellation, in respect of any registered person, other than a person specified in clause (b) thereof.
   2. Amendment in sub-section (5) of section 39
      To provide non-resident taxable person shall furnish the return for a month within thirteen days after the end of the month or within seven days after the last day of the period of registration specified under sub-section (1) of section 27, whichever is earlier.
   3. Amendment to sub-section (10) of section 49
      To allow transfer of amount available in electronic cash ledger under the Central Goods and Services Tax Act of a registered person to the electronic cash ledger under the said Act or the Integrated Goods and Services Tax Act of a distinct person.

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CS Sanjeev Khurana