Page 27 - Union Budget, 2022

Union Budget, 2022

• Income of a non-resident by way of royalty on account of leasing of ship to a unit in IFSC (unit
eligible for deduction u/s 80LA and has commenced its operations on or before 31.03.2024) shall be
exempt u/s 10(4F) (earlier was allowed only for aircraft).
• Deduction u/s 80LA is now proposed to be extended to income arising from transfer of ship leased
by an IFSC unit, which commenced its operations before 31.03.2024 (earlier was allowed only for aircraft).

AY 2023-24 and subsequent AYs

The amendment intends to fortify the growth of GIFT City. The Government has been bringing various
amendments to encourage operations in GIFT City with the prime focus of attracting offshore entities, with
interests in India, to operate out of GIFT City. Continuing with the same intent, the Government has now
expanded the scope by providing exemptions to persons dealing with entities operating in GIFT City.

Trends in Social Service Sector Expenditure by Government (Centre and State)

Studies

Inference • Government’s spending on social services increased significantly during the pandemic.
• The National Health Policy, 2017 envisaged to increase Government’s health expenditure
to 2.5% of GDP by 2025. In keeping with this objective, Central and State Governments’
budgeted expenditure on health sector reached 2.1% of GDP in 2021-22 (inclusive of
vaccination costs), against 1.3% in 2019- 20.

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