Budget 2022: 5 Critical Announcements That Every Entrepreneur Should Be Aware Of
At exactly 11AM, Finance Minister Nirmala Sitharaman started presenting the Union Budget 2022.
This is 10th budget under PM Modi’s Government, and 4th Budget presented by Finance Minister Nirmala Sitharaman.
Most of the entrepreneurs and business owners we spoke with, termed this as a neutral budget. Some of the critical aspects like GST relief, tax slabs and push for more FDI were ignored, but at the same time, some really interesting and futuristic announcements were made.
Here are top 5 critical announcements that every entrepreneur should be aware of..
Tax Incentives For Startups
Govt has announced that the tax holiday for small businesses and startups will be extended till March 31, 2023. Originally introduced by then Finance Minister Late Arun Jaitley, startups which launched after March 31, 2016 were given special tax rebate, that has been now extended till March 31, 2023.
Special tax of 15% for manufacturing industries too have been extended till March, 2024.
No Capital Gains On Startup Investment
Govt as extended the relief on capital gains tax arising from startup investment, till March 31, 2022. This will encourage more VCs and investors to invest in Indian startups, and thus, pay less tax on capital gains arising from exit or further funding.
30% Tax On Crypto Trade
Govt has announced a flat tax slab of 30% on all income generated by buying or selling of crypto assets in India.
Besides, for all payments made to transfer the crypto assets, a special 1% TDS will be imposed.
Govt has also announced that a new digital currency will be launched, based on blockchain.
5G Launch In 2023
On the 5G front, Govt has announced that full fledged 5G will be launched across India, by 2023. Auction of 5G spectrum will be over in this year itself.
Income Tax Updates
For filing income tax, Govt has provided a period of 2 years for taxpayers to file updated returns, to rectify any omissions or errors, from the end of the relevant financial year. This means that the taxpayer will now get 2 years to file income tax returns, which was earlier 1 year.
Besides, there is no change in the Income Tax slabs for taxpayers.
We have highlighted all major updates related to Budget 2022 right here.