Continuing the series, some of the interesting and important aspects that may get covered in the upcoming Union Budget 2022 are with respect to:

“Cryptocurrencies”

Government may come out with draft regulations focusing on:

a.     A hybrid regulatory body under SEBI – RBI;
b.     Licensing for platforms;
c.     Framework for Crypto products;
d.     Operating guidelines including trading and settlement;
e.     Investor KYC and disclosures;
f.      Investor awareness;

“Changes in Special Economic Zone (SEZ) Regulations”

Several Stakeholders have raised concerns that as the key benefits of having an establishment in SEZ are almost over i.e., tax holidays etc. and many corporates might move out of SEZ.  

Also, Companies in SEZ are required to comply with some additional compliance obligations such as net foreign exchange earning regulations etc. Operating out of SEZ might bring some ease.
Basis the Industry expectation, Government is expected to look after few aspects such as:

a.     Extension of direct tax holidays;
b.     Favourable taxation structures;
c.     Less compliances;
d. Vesting of additional powers with SEZ authorities for operational flexibility

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