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"Dear FM, decrypt the crypto, walk the talk concerning new re-assessment regime, ensure audi alteram partem in faceless assessments & penalty and provide level-playing field to firms & LLPs, in the upcoming Union Budget 2022-23.
This year’s Union Budget 2022-23, slated to be presented on February 1, 2022, is expected to have some very large-scale ramifications for the block chain technology-based Cryptocurrencies and Non-Fungible Tokens (NFTs). Though it is clear that cryptocurrencies shall not be considered as legal tender or currency, but still a precise clarity about their disclosure requirements & taxability by way of insertion of specific legislative provisions in the Income Tax Act itself is desirable to bring much needed certainty to the $10 billion crypto investments market in India.
Certainty is also required in the ground-level implementation of the new re-assessment regime u/s 147/148. The Government should walk its talk concerning the reduction in time period of re-opening of concluded assessments from 6 years to 3 years by giving cognizance to the judgements of Hon’ble Delhi High Court & Allahabad High Court holding the re-assessment notices issued under old section 148 on or after 1.4.2021, as bad in law, rather than bringing an amendment to nullify these judgements.
Other procedural amendments like giving a by-default right of personal hearing via video conferencing to the assessees in all faceless assessments and penalty proceedings, in line with the recently amended faceless appeals scheme, can play a very big role in reducing probable tussles and litigations.
Measures such as rationalizing the advance tax instalments mandating the payments of 25%-50%-75% instead of the existing 60%-75%-90%, extension of similar benefits of reduced tax rates u/s 115BAA to firms and LLPs, extending the benefit of presumptive taxation u/s 44ADA to partners of firms and LLPs, can result in increased disposable income for consumption, both in the hands of individuals and corporates.
Ensuring speedy refunds by doing away with the withholding provision in section 241A can produce better results to inject liquidity in the economy than the fiscal packages. Increasing ‘safe harbour limit’ from the present 10% to 20% permanently in sections 50C, 43CA & 56(2)(x) can help a lot in boosting the real-estate sector. These basic yet effective measures can act as a ‘booster dose’ for reviving our economy and providing a fillip to ‘Ease of Doing Business’ in India. "
{Mayank Mohanka, FCA, Founder Director in TaxAaram India Pvt. Ltd. & Partner in S M Mohanka & Associates}
