Future sense, but present tense

If there is one phrase to describe this budget it is virtually wise It has touched upon the use of drones Digital currency and digital schools have been factored in and so have continued unchanged provision of faceless assessments Finance Minister Nirmala Sitharaman has brought out changes which have far reaching implications for the economy and the citizensLooking aheadThe use of lsquoKisan dronesrsquo for agricultural produce is a solid reflection of the vision for the future Continuing down the same path virtual currency finding a place in the income tax structure is a very dynamic step for the future The inclusion of tax provisions for virtual currency and tax deduction at source makes India possibly one among few countries to incorporate this vision The focus on digital schools when it comes to education is a thrust in the right directionCrypto legitIt is apprehensions gone and a spirit of bring it on as Reserve Bank of India RBI coming out with digital currency means one does not have to be wary about several digital currencies and speculations about the same Here though I have to mention that there are certain contradictions At one point in time there were talks about a crypto ban and now there is a complete Uturn and legitimisation with tax effectLiveability IndexThere is something for startups too with an extension of deductions for startups and manufacturing units This is welcome news but we celebrate with a slight caveat This could have possibly been extended up to 2030 to provide certainty to capital and such investments There is also a doff of the hat for provision for deductions to supporters of disabled persons It is very thoughtful Many such similar provisions allowing for overall enhancement in the liveability index like allowing such expenses especially for the middleincome group would have seen them benefit immensely without much shortfall of fiscal revenue Some examples are housing deductions savings allowances increasing taxable income thresholds considering inflation would have gone some way in bringing relief to the lowermiddle income taxpayers income group This was an opportunity for the FM to take a pathbreaking step like doing away with Income Tax and emphasising GST but that has not been doneCorrect itTax payers often find they have erred in tax returns and it becomes very difficult to rectify One has to approach this through a condonation application which is very time consuming Now they have been given an opportunity since they can file an updated tax return within two years of the assessment year A welcome move would have been towards clarifying the nonresidential status provisions since there were several complications but this was not amendedGetting tougherTough times just got tougher for tax defaulters and evaders as they have to face one more step of problems They will not be allowed to set off their losses against any undisclosed and unearthed income during search or survey The expenditure being disallowed us 14A without earning exempt income will lead to unnecessary litigation and additional taxes to corporates The longterm capital gains surcharge being capped at 15 per cent will help high net worth individuals in their capital gains Overall this is a digital budget and Sitharaman has had her binoculars on looking at virtual reality for future growth and inclusivity too as she has brought in the rural economy This was an opportunity to remove several anomalies which exist in the current provisions One cannot ignore the UAE imposing future taxation of 9 per cent to certain corporations going by the recent announcement making cross border structuring even tougherMiddle missThis budget is not for the lower or middleincome group or even the middle class as it has not provided any additional allowances or incentives For example there could have been proposals for allowing several healthcare expenses as a deduction from onersquos personal income tax especially since citizens have suffered a lot due to pandemic This budget does see certain ground realities that have been missed out though it is sophisticated and with great vision We can say grammatically present tense future perfectMitil Chokshi is senior partner Chokshi amp Chokshi India