ICSI, ICAI applaud Union Budget 2022; say it is forward-looking

ICSI applauded the Union Budget 2022 and said its focus on productivity, climate action, financing investment and the PM Gati Shakti plan is aimed at promoting growth

The Institute of Company Secretaries of India (ICSI) has applauded the Union Budget 2022 and said its focus on productivity, climate action, financing investment and the PM Gati Shakti plan is aimed at promoting growth and sustainability.

"It is a very progressive Budget aiming at inclusive development through incentivising MSME sector and start-ups. It proposes to strengthen the digital payment ecosystem, which will have a positive impact on the ease of doing business and will promote FDI as well," ICSI President Devendra V Deshpande said.

He added that besides this, the introduction of a Digital Currency is a forward-looking step and will place India at the international platform in this arena.

Separately, ICAI in a statement said the Budget is "forward-looking" and added that the proposal to tax virtual digital assets at 30 per cent provides certainty.

"A proposal aimed at promoting voluntary tax compliance and reduce litigation is the introduction of an enabling provision permitting the filing of an updated return i.e. revised within two years from the end of the relevant assessment year, on payment of an amount equal to 25 per cent/ 50 per cent as additional tax on the tax and interest due on the additional income.

"This proposal serves the dual purpose of revenue mobilisation and reducing litigation," it said.

On proposals with respect to indirect taxes, it said the proposals are in tandem with the government's endeavour of overcoming the challenges in GST compliance processes and bolstering the ease of doing business.

Also, the proposal to cap the tax at 15 per cent on the rate of surcharge on long-term capital gains arising on transfer of any type of assets is aimed at providing relief to the taxpayers.