Page 22 - Union Budget, 2022

Union Budget, 2022

Expanding the scope of onus of proof for cash credits
• It is proposed to amend Sec 68 to provide that in case of any amount credited, in the form of loans or
borrowings or any such amount, the source of funds of the creditor or entry provider is additionally

required to be satisfactorily explained.
• However, this additional onus of proof of satisfactorily explaining the source in the hands of the
creditor, would not apply if the creditor is a well-regulated entity i.e. Venture Capital Fund or Venture

Capital Company, registered with SEBI.
AY 2022-23 and subsequent AYs

• The proposed amendment casts additional onus on the assessee to satisfactorily explain the source of
funds in the hands of the creditor for all credit transactions.

• Earlier, the requirement was limited only in the case of issue of shares at a premium to a resident by a
company in which public was not substantially interested.
• However, with the proposed amendment, the requirement to explain the source of the debt funding
shall be extended to any assessee receiving from any person including non-residents (excluding well-
regulated entities as mentioned supra).

Inclusion in powers of the CBDT to issue orders, instructions and directions
• It has been proposed to amend Sec 119 to extend the scope of CBDT to provide instructions to relax
the provisions of payment of late filing fees of Rs.5,000 on delayed filing of ITR for specified classes
of taxpayers.

AY 2022-23 and subsequent AYs

• The proposed amendment is consequent to recommendations and suggestions from professionals and
following the judgements given by the Courts.

• This amendment is a welcome move to relax the provisions in case of genuine hardships faced by the
assessee due to various glitches in the Income Tax portal and for non-filing of returns due to reasons
beyond the control of the assessee.

Widening the scope of reporting by producers of cinematograph films or
persons engaged in specified activities
The reporting requirements in Form 52A with respect to specified activities u/s 285B is proposed to
mean
• event management,
• documentary production,
• production of programs for telecasting on television or any other platforms,
• sports event management,
• other performing arts or
• any other activity
as the Central Government may, by notification in the Official Gazette, specify in this behalf.

AY 2022-23 and subsequent AYs

The proposed amendment widens the scope of requirement u/s 285B. Now, the assessees engaged in
the aforesaid specified activities shall also be required to comply with the reporting requirements with
respect to payments in excess of Rs.50,000.

Insights from NES

India’s services sector activity, gauged by PMI services, started to grow from August 2021 recording strongest

jump in over 10 years to 58.4 in October 20213. PMI index moderated to 55.5 in December 2021.

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