Budget 2022 Expectations: Concessions in direct taxes, REITs, InvstITs taxation changes, custom duty relief

Finance Minister Nirmala Sitharaman is expected to present the Union Budget on February 1, 2022.

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New Delhi: Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2022 on February 1, 2022. A few days ahead of the Budge 2022 presentation, HDFC Bank, in its report titled ‘Fiscal Balance and Budget Expectations’, pointed out key 'asks' of different stakeholders. 

Here’s what HDFC Bank said in its Fiscal Balance and Budget Expectations report: 

1. HDFC Bank said, "On the Direct taxes front, some key concessions are sought to promote broader macro goals like employment. For instance, there is a proposal to enhance the monetary limit for deduction in respect of employment of new employees u/s 80JJAA from Rs. 25,000 per month to Rs. 1 lakh per month."

2. In the case of REITs and InvstITs, changes in their taxation “specifically with the objective of bringing long term capital gains treatment at par with other asset classes could also find a mention in the budget,” HDFC noted. 

3. Moreover, as far as the startup ecosystem is considered, HDFC Bank stated that “there is a demand to level the playing field by extending concessional LTCG rate of 10% concessional rate to resident Investment."

4. HDFC Bank also talked about Custom Duty reductions, and said, "Indian manufacturers have been significantly affected by high input costs that have in part ridden on the commodity price upcycle that has ridden on the back of supply shortages and high global liquidity."

"To counter this, industry has asked for customs duty reductions in a number of imported inputs particularly primary intermediates. This includes coking coal, ethanol, metallurgical coke and copper scrap, Duty reductions have also been sought in some specialized technology areas such as telecommunication network areas and optical fibres where current duties are high," the bank added.

5. For the hospitality sector, HDFC Bank noted that the industry is seeking rationalisation of custom duties on procurements. They are also seeking custom duty relief for supplies and equipment used in the Covid-19 affected hospitality sector. Also Read: Aadhaar Card Update: Check steps to change old photo on Aadhaar 

"Broadly, the demand is for evolving a simplified customs structure with a single rate of all intermediates and higher rates forthose that are carefully identified as final goods," the bank said in its Fiscal Balance and Budget Expectations report. Also Read: TCS profit rises by 12.3% to Rs 9,769 crore in Q3

- With inputs from Zee Business.