A.
Direct Tax
a) Reducing AMT & Surcharge for co-operative societies from 18.5% and 12% (Income below ₹ 1 crore) to 15% & 7% respectively.
b)
NPS deduction of for State Government
employees increased from 10% of salary to 14% of salary.
c)
Existing tax benefits for Startups
which were offered redemption of taxes for 3 consecutive years to be extended
by 1 more year till 31st March 2021
d) Extending benefits by one more year of Sec. 115BAB of Income Tax Act, 1961 to newly incorporated Manufacturing entity 31st March 2024.
e) Virtual digital assets to be taxed at 30% and 1 % TDS on transfer of virtual digital assets. No Deduction shall be allowed from such income apart from cost of acquistion. Loss from such asset cannot be setoff against any other income.
f)
Easing custom rules for units in SEZ
g)
Maximum surcharge in case of AOP to be
capped at 15%
h)
Surcharge on LTCG to be capped at 15%
on transfer of any all the assets which was previously limited only on LTCG in
case of sale of listed equity shares
i)
Clarification provided that Any surcharge / cess (including Health &
Education) not allowed as business expenditure.
j)
No set off of loss undisclosed income
detected during search, surveys.
B.
Indirect taxes
i. Duty concession for some electronics manufacturers.
ii. Exemption on
certain agricultural produces, chemicals, fabrics, medical devices.
iii. Custom Duty
reduced on methanol, acetic acid, heavy feedstock for petroleum refining
C.
Other
announcements
1)
'One Class One TV Channel' will be increased from 12
to 200 TV Channels to provide supplementary education in regional languages
for class 1-12.
2)
A digital
university will be developed to provide access to students for world-class
quality education with ISTE Standards.
3)
For
mental health counselling, a National
Tele Mental Health Program will be launched.
4)
75 Digital Banking units in 75 districts to be setup by Scheduled Commercial Banks.
5) 1.5 Lakh Post offices to be connected digitally through CORE system.
6) Issuing chip based passports and e-passports for convenience in overseas travel.
7) 'One Nation, One Registration' will be established for anywhere registration to facilitate ease of living & doing business.
8) Promoting use of Electronic vehicles in public transportation
9) All government procurements to be made digitally. Also, 75% payments of all open bills to be made in 10 days.
10) 5G spectrum auction to be held in 2022-23. Optical fibres in all villages to be established in PPP mode
11) Defence R&D to be open up for industry, startups anad academia with 25% of defence R&D budget in collaboration with DRDO through SPV mode.
12) SEZ act will be replaced by new legislation.
13) Sovereign Green bonds to be launched in 2022-23.
14) Introduce Digital rupee using block chain and other mode.
15) For farmers to adopt to natural farming, comprehensive package for participation of State governments & MSMEs to be introduced.
16) Hospitality services by the small & medium sector are yet to bounce back, therefore, the government has decided to extend the ECGL service for this sector by March 2023 with an increased cover of Rs 50,000
17) Skilling programs will be reoriented. For skilling, upskilling & reskilling of our youth, Digital DESH e-portal will be launched.
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