The Union Budget 2022 is expected to release on 1 February by the Finance Nirmala Sitharaman. The last year's budget was based on health and rural infrastructure development but this year it is assumed that the budget will be more toward the economy of the country as the coronavirus surge. It is also said that the Finance minister will especially look after work from home employees and give special benefits to them, she will also not disappoint the tax givers this year.
Apart from this, the news is also coming that this year's budget will bring tax SOPs for start-ups. This will carry forward the losses and accumulated depreciation during mergers and acquisitions as a way to incentivize and promote consolidation in the start-up environment, as per CNBC.
It is been reported that the centre is likely to want consolidation in the emerging services sector to allow companies to compete with global rivals. But this proposition has not been available to start-ups in the retail and services sector.Amrish Shah, Partner, Tax, Deloitte India said, "Carry forward of losses in all types of amalgamations and demergers should be provided for. This would give greater flexibility on mergers and demergers.”
However, the service sector is the largest sector of the economy, accounting for the economy of the country and also one of the fastest-growing not just in India but the world.