With February looming all thoughts turn towards the Budget and speculations run rife on what the papers in the Union Minister of Finance Nirmala Sitharaman’s briefcase will indicate!

The new year dawns new hope, light, peace, joy, and a promise for a better tomorrow. So, with the new year kicking in, backed up by an impressive vaccination pace which is not only safeguarding against the deadly virus but is also acting as a medium to unleash the repressed demands and supplies of this pandemic, the forthcoming budget is becoming the talk of the town. 

While the overall growth remains positive—the Government estimates 9.2% growth in the upcoming fiscal year—certain uncertainties still prevail around few sectors that are still rigorously working towards rebound. With digitization being on forefront of the so-called ‘Pandemic Era’, job and supply chain restructuring for better growth optimization may continue to be in play. Thus, the overall objective of the Government should revolve around policy implementation that would boost employment opportunities, coupled with key focus on unduly impacted sectors while continuing to foster the agenda of ‘Atmanirbhar Bharat Abhiyan’.

As a precursor to the Union Budget 2022-2023, stated below are some key expectations at sectorial level primarily on tax front, for quick reference:

• On an overall tax front, eyes are kept glued at revision in tax slab rates coupled with relief in form of an additional deduction on expenses incurred consequent to inflated healthcare-related costs and new normal ‘Work From Home’ expenses. Also, for India Inc. concerns on account of deductions for CSR expenses incurred consequent to the pandemic and policy framework for taxation of cryptocurrencies, remains some key focus areas. In addition, on Indirect Taxation, expectations are towards the inclusion of wide range of sectors in the PLI schemes; addressing the challenges revolving around SEZ scheme; addressing issues concerning credit accumulation and inverted duty structure under GST.
• Ease in tax burden concerning debt financing for infrastructure projects; rationalization of tax benefits for Sovereign Wealth and Foreign Pension Funds will encourage more investments in Indian Infrastructure.
• Expectations in Consumer Industry concerns the ease of doing business; policies for supporting technology development and infrastructure for optimizing retail supply chain.
• Tax holidays and funding for hospitals; creation of ecosystem for innovation and research are expected under Life Sciences and Healthcare sector.
• Expectations in Financial Services revolve around tax changes for IFSCs; relaxation from digital tax/withholding tax for financial services transactions/securities coupled with Regulatory and tax framework for cryptocurrencies.
• Group taxation regime to address administrative challenges and compliance burden remains the key focus ask by the energy sector. 

Punita Bhuchar Rana, a LWL member, is Director, Taxes and Indirect Taxes, Deloitte Haskins and sells LLP with many years professional experience at Uber and GE behind her.