March 25, 2022
Satabdi Roy’s speech during the consideration and passing of The Finance Bill 2022
सर, पनपशकांत िबुेजी नेवहबताकर अिनी स्िीच स्टाटट की, जो उनको िता हैपक अिोपजशन क्या कहगे ा। अिोपजशन को र्ी िता हैपक वेक्या कहगेंेपक बीजेिी सरकार की अच्छी हैऔर कांग्रेस पकतनी खराब ह।ै Sir, coming to the Finance Bill, 2022, every year the Central Government introduces the Finance Bill along with other documents of the Union Budget. The
Finance Bill is brought to seek the Legislature’s approval for giving effect to the various tax proposals, including direct and indirect taxes, of the Central Government. These documents discuss the key provisions that are part of the
Finance Bill, 2022. Now, I come to the main tax proposals in the Finance Bill. First is rationalisation of surcharge. The Budget noted that there are several work contracts that require the formation of a consortium. The members in such consortiums are usually companies. Such consortiums or association of persons are subjected to a graded surcharge of up to 37 per cent on their income. Please note that the surcharge on domestic companies with income between Rs.1 crore and Rs 10 crore is seven per cent while for those with income above Rs 10 crore is 12 per cent. The Budget proposes to cap the surcharge levied on the income of consortiums or association of persons at 15 per cent. Also, the long-term capital gains tax on listed equity shares is subject to a maximum surcharge of15 per cent.
However, other long-term capital gains tax is subjected to a graded surcharge up to 37 per cent. It has been proposed to cap the surcharge on long-term capital gains from transfer of any type of asset at 15 per cent. Next, I come to the strategic disinvestment of Public Sector Companies. According to Section 79 the Income Tax Act, 1961, in case of change in the shareholding of a company in the previous year, any loss incurred prior to the previous year cannot be set off against the income of the previous year. This is applicable for companies where the public does not have a substantial interest. The Finance Bill, 2022 seeks to amend the Income Tax Act to provide that Section 79 will not apply to an erstwhile Public Sector Company. However, the holding company of the erstwhile Public Sector Company must continue to hold at least 51 per cent of the voting power immediately after the strategic disinvestment Now I come to tax on virtual digital assets. Virtual digital assets have gained popularity, and the volume of trading in such assets has substantially increased. In addition, a market is developing where payment for transferring virtual digital assets can be made through another such virtual digital assets. The Finance Bill proposes to tax any income from transfer of virtual digital assets at 30 per cent. No deduction related to any expenditure or allowance or setoff of
any loss will be permitted while computing the income from transfer of such assets. Moreover, any loss from transfer of virtualdigital asset will not be allowed to be set off against income under “any other provisions of the Income Tax Act”. Such losses will also not be allowed to be carried forward to subsequent assessment years. The proposed amendment will come into effect from April 1, 2023. Please note that the Central Government has circulated certain
amendments to the Finance Bill. The proposed amendments drop the word “other” from the clause, “any other provisions” regarding setting off of losses, as stated above. This may imply that the loss from virtual digital assets cannot be set off against the gains in such assets as well. Sir, taxpayers will be permitted to file an updated return on Income Tax within two years of the Assessment Year. They will have to pay 25 per cent penalty on tax, and interest due, if it is filed in the year after the Assessment Year, and 50 per cent penalty in the second year. Co-operative societies have to pay Alternate Minimum Tax (AMT) at 18.5 per cent rate. It may be noted that the Taxation Laws (Amendment) Act, 2019 reduced the minimum Alternate Tax Rate payable by companies at 15 per cent. To provide parity between co-operative societies and companies, it has been proposed to reduce the AMT rate to 15 per cent at which co-operative societies pay Income Tax. These amendments will be applicable from April 1, 2023. The Finance Bill also proposes to change the Customs Duty on a number of items. For example, the current Customs Duty on microbial fats and oils and their fractions is 30 per cent whereas the new Customs Duty will be 100 per cent. Similarly, the current Customs Duty on umbrella is 10 per cent and the new Customs Duty will be 20 per cent; on imitation jewellery, current Customs Duty is 20 per cent whereas the new Customs Duty will be 20 per cent or Rs.400 per kilogram, whichever is higher. The current Customs Duty on single or multiple loudspeakers as well as headphones and earphones is 15 per cent, but the new Customs Duty on these items will be 20 per cent. On smart meters, current Customs Duty is 15 per cent and the new Customs Duty will be 25 per cen. The current Customs Duty on both solar cells and solar modules is 20 per cent, and the new Customs Duty will be 25 per cent and 40 per cent respectively. There are certain non-tax proposals in the Finance Bill also. The Reserve Bank of India Act, 1934 is being amended to enable RBI to issue its digital currency. सर, मैंपसिट यहबोलकर अिनीबात खत्म करना चाहतीह ं पक क्या अमेंडमेंट होताहै, क्या पबल आतेहैं, क्या िाइनेंस पबल ह, ै िेश केबहुत सारेगरीबों को कुछ नहीं िता है। उनको िता र्ी नहीं करना हैपक िापलटयामेंट मेंक्या पडस्कशन हो रहा है। उनका पसिट यही क्वेश्चन हैपक िेट्रोल, डीजल, गैस पसलेण्डर के प्राइस कब कम होंगेऔर कैसेकम होंगे? उनको पसिट कब का ही आंसर चापहए, यह पडस्कशन और येसब उनको कुछ नहीं चापहए, इसका कुछ मतलब नहीं है, उनको कुछ लेना-िेना नहींहै। सर, पमपनस्टर सेपसिट यहिूछना हैपक काग्रं ेस को जो र्ी िोष िीपजए या बीजेिी पकतना अच्छा कर रही ह, ै उसमेंहम लोगों को कुछ लेना-िेना नहीं है। हम लोगों का र्ी यही क्वेश्चन हैपक कब इसके प्राइस कम होंगे? कब, कब, कब? थैंक्यू।
