AVGC Promotion Task Force
AtmaNirbharta in Defence:
· Defence R&D to be opened up for industry, startups and academia with 25% of defence R&D budget earmarked.
· Independent nodal umbrella body to be set up for meeting testing and certification requirements.
Energy Transition and Climate Action:
· Five to seven per cent biomass pellets to be co-fired in thermal power plants:
· Four pilot projects to be set up for coal gasification and conversion of coal into chemicals for the industry
· Financial support to farmers belonging to Scheduled Castes and Scheduled Tribes, who want to take up agro-forestry.
Public Capital Investment:
· Outlay for capital expenditure stepped up sharply by 35.4% to Rs. 7.50 lakh crore in 2022-23 from Rs. 5.54 lakh crore in the current year.
· Outlay in 2022-23 to be 2.9% of GDP.
· Venture Capital and Private Equity invested more than Rs. 5.5 lakh crore last year facilitating one of the largest start-up and growth ecosystem. Measures to be taken to help scale up this investment.
· Blended funds to be promoted for sunrise sectors.
· Sovereign Green Bonds to be issued for mobilizing resources for green infrastructure.
Providing Greater Fiscal Space to States
· Allocation of Rs. 1 lakh crore in 2022-23 to assist the states in catalysing overall investments in the economy: fifty-year interest free loans, over and above normal borrowings
· Revised Estimates 2021-22: Rs. 37.70 lakh crore
· Total expenditure in 2022-23 estimated at Rs. 39.45 lakh crore
· Total receipts other than borrowings in 2022-23 estimated at Rs. 22.84 lakh crore
· Fiscal deficit in current year: 6.9% of GDP (against 6.8% in Budget Estimates)
Fiscal deficit in 2022-23 estimated at 6.4% of GDP
To take forward the policy of stable and predictable tax regime:
Introducing new ‘Updated return’
Tax relief to persons with disability
Parity in National Pension Scheme Contribution
Incentives for Start-ups
- Centre for Processing Accelerated Corporate Exit (C-PACE) to be established for speedy winding-up of companies.
- An animation, visual effects, gaming, and comic (AVGC) promotion task force to be set-up to realize the potential of this sector.
- Scheme for design-led manufacturing to be launched to build a strong ecosystem for 5G as part of the Production Linked Incentive Scheme.
- Special Economic Zones Act to be replaced with a new legislation to enable States to become partners in ‘Development of Enterprise and Service Hubs’.
- 68% of capital procurement budget earmarked for domestic industry in 2022-23, up from 58% in 2021-22.
- Government contribution to be provided for R&D in Sunrise Opportunities like Artificial Intelligence, Geospatial Systems and Drones, Semiconductor and its eco-system, Space Economy, Genomics and Pharmaceuticals, Green Energy, and Clean Mobility Systems.
- Additional allocation of Rs. 19,500 crore for Production Linked Incentive for manufacture of high efficiency solar modules to meet the goal of 280 GW of installed solar power by 2030.
- Help avoid stubble burning in agriculture fields.
- Extra income to farmers and job opportunities to locals,
- CO2 savings of 38 MMT annually,
- Public investment to continue to pump-prime private investment and demand in 2022-23.
- ‘Effective Capital Expenditure’ of Central Government estimated at Rs. 10.68 lakh crore in 2022-23, which is about 4.1% of GDP.
- World-class foreign universities and institutions to be allowed in the GIFT City.
- An International Arbitration Centre to be set up for timely settlement of disputes under international jurisprudence.
- Data Centres and Energy Storage Systems to be given infrastructure status.
- Introduction of Digital Rupee by the Reserve Bank of India starting 2022-23.
- Enhanced outlay for ‘Scheme for Financial Assistance to States for Capital Investment’:
- From Rs. 10,000 crore in Budget Estimates to Rs. 15,000 crore in Revised Estimates for current year
- In 2022-23, States will be allowed a fiscal deficit of 4% of GSDP, of which 0.5% will be tied to power sector reforms
- Budget Estimates 2021-22: Rs. 34.83 lakh crore
- Vision to establish a trustworthy tax regime.
- To further simplify tax system and reduce litigation.
- Provision to file an Updated Return on payment of additional tax.
- Will enable the assessee to declare income missed out earlier.
- Can be filed within two years from the end of the relevant assessment year.
- Alternate Minimum Tax paid by cooperatives brought down from 18.5 per cent to 15 per cent.
- To provide a level playing field between cooperative societies and companies.
- Surcharge on cooperative societies reduced from 12 per cent to 7 per cent for those having total income of more than Rs 1 crore and up to Rs 10 crores.
- Payment of annuity and lump sum amount from insurance scheme to be allowed to differently abled dependent during the lifetime of parents/guardians, i.e., on parents/ guardian attaining the age of 60 years.
- Tax deduction limit increased from 10 per cent to 14 per cent on employer’s contribution to the NPS account of State Government employees.
- Brings them at par with central government employees.
- Would help in enhancing social security benefits.
Incentives under concessional tax regime
Scheme for taxation of virtual digital assets
Tax incentives to IFSC
Rationalization of Surcharge
Health and Education Cess
Deterrence against tax-evasion
Rationalizing TDS Provisions
- Period of incorporation extended by one year, up to 31.03.2023 for eligible start-ups to avail tax benefit.
- Previously the period of incorporation valid up to 31.03.2022.