Inc42's Budget 2022 Guide_1

Page 1

Decoding The Impact On India's Startup Economy

Key Takeaways Startup tax holiday scheme extended to startups incorporated till March 2023

30% tax on income from virtual digital assets

LTCG tax on all equity investments capped at 15%

Ease of doing business 2.0 introduced

India to get a digital rupee in 2022-23

Digital University for online higher education

Startup Tax Holiday Gets Extension Startup tax holiday scheme extended to startups incorporated till March 2023 Extension of concessional tax regime for new manufacturing companies

Long-Term Capital Gains Capped LTCG Surcharge on all equity investments capped at 15% Income surcharge on companies in a consortium capped at 15% Long Term Capital Gains Comparison Before Budget 2022

After Budget 2022

Tax Rate



Maximum Surcharge






Effective Tax Rate



Credits: Siddarth Pai

Ease Of Doing Business 2.0

Expanding “Parivesh” single window portal for green clearances





Standardisation and removal of overlapping compliances




'One Nation, One Registration' regime for incorporation

Improved Ranking Of India In Ease Of Doing Business

150 India’s Bank

Crypto Ecosystem In Tax Net 30% tax on income from virtual digital assets 1% TDS on crypto transactions over a certain threshold

India To Get A Digital Rupee Digital Rupee using blockchain and other technologies proposed To be issued by the Reserve Bank of India starting 2022-2023

Skill Development Comes Into Focus A new DESH-Stack for skilling, reskilling and upskillling needs 750 science and mathematics virtual labs 75 skilling labs for simulated learning environments Updating National Skill Qualification Framework (NSQF)

Edtech Digital University & eVIDYA Expansion

eVIDYA language support to be broadened Training and support for digital teachers

2021-22 RE


eVIDYA to be expanded to 200 TV channels

National Education Mission (In Crore)


Digital University for online higher education

2022-23 BE

Agritech Startups Get Big Push Public-private partnerships potential for startups for agritech push NABARD-led funds for agritech startups and rural enterprises Push for drone and farming-as-a-service

Skies Cleared For Drone Startups Supporting drone-based applications for agriculture Drone Shakti scheme to encourage varied applications for UAVs

MSMEs Get Platform Boost Interlinking of MSME portals to offer government, business services Emergency Credit Line Guarantee Scheme extended to 2023 MSME guaranteed cover extended by INR 50,000 Cr

Digital Banking, Payments Get A Push Inclusion of post office banks under the core banking umbrella 75 digital banking units to be set up by scheduled commercial banks Renewing INR 1,500 Cr allocation to boost digital payments

EV Battery Swapping Comes Into Focus Battery swapping policy proposed for interoperability Push for battery/energy-as-a-service

Defence Sector Opened Up For Startups Defence R&D opened up for startups DRDO-led private public partnerships for design and development

5G Launch Imminent 5G spectrum auction in 2022 5G services to be rolled out in 2022-23

PM GatiShakti: UPI Moment For Transport Tech? Target of 25,000 Km National Highways in 2022-23 Revamped Unified Logistics Interface Platform Open source mobility stack Integration of postal and railway network 400 energy efficient Vande Bharat trains Multimodal connectivity for urban transport and transit stations