Union Budget 2022 Latest Highlights: Good or Bad: FM Nirmala Sitharaman

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Union Budget 2022 Latest Highlights

Fiscal Deficit

The 2022-23 budget finely balanced fiscal retreat with supporting economic recovery. The markets could be disappointed with a higher fiscal deficit of 6.4% of GDP for FY23 than expected.

Capital Expenditure

Effective Capital Expenditure of the Central Govt is estimated at ₹10.68 lakh crores in 2022-23, about 4.1% of GDP.

Paperless e-bill system

A completely paperless, e-bill system will be launched by ministries for procurement.

Announcement for EVs

 the battery swapping policy and recognizing battery and energy as a service will help to develop charging infrastructure and increase the use of EVs in public transportation.

The creation of a strong charging infrastructure alongside the highways across the country would promote the use of EVs for interstate travel.

Startups

The government has extended startup tax holidays and concessional tax for manufacturing startups by a year. While that was on the cards, it doesn’t address the core need of startups to be given a longer tax holiday of 5 years as required.

New Income Tax Reforms

Taxpayers can file updated ITR within two years of the relevant assessment year, says FM. This is a new provision that will ensure voluntary tax filing and reduce litigation.

Long Term Capital Gain (LTCG)

Presently surcharge on long-term capital gain on listed shares and equity funds is capped at 15% but for other LTCG the surcharge is based on total income. Now the Finance Minister has proposed a cap on all LTCG. 

Digital Rupees

Introduction of central digital currency using blockchain to be issued by RBI in 22-23.

Virtual Assets

Income from virtual digital assets to be taxed at 30%. No deduction other than the cost of acquisition will be allowed. Transaction details to be captured by way of TDS @1% on sale.

Loss from the transfer of virtual digital assets cannot be set off against any other income.

International Arbitration Centre

An international arbitration center will be set up at GIFT City to provide faster dispute resolution. In addition, a world-class university to be allowed in GIFT IFSC (International Financial Services Centre) free from domestic regulation.

Polished Diamonds, Gems

Customs duty on cut & polished diamonds, gems to be reduced to 5%

New Manufacturing Companies

Concessional corporate tax rate of 15 pc would be available for 1 more year till March 2024 for new manufacturing companies.

Import Duty on Capital Goods

Import duty of 7.5% to be charged on capital goods.

GST Collection

The gross GST collections for the month of January 2022 are ₹1,40,986 crores which is the highest since the inception of GST.

Corporate Surcharge

Corporate surcharge to be reduced from 12% to 7%.

NPS Account of State Govt Employees

Propose to increase tax deduction limit to 14% on employers contribution to NPS account of state govt employees.

5G auction

India will auction 5G airwaves this year to facilitate a rollout of the next-generation telecoms service in 2022-23

All 1.5 lakh post offices to connected

All 1.5 lakh post offices in India will be connected to the core banking system that will enable people to access their accounts online and also transfer money within post office accounts and to other banks.

Urban planning

5 existing academic institutions for urban planning to be designated as Centre for Excellence with an endowment fund of ₹250 cr.

Defence ‘Aatmanirbharta’

68% of the capital procurement budget for Defence to be earmarked for domestic industry to promote Aatmanirbharta and reduce dependence on imports of defense equipment. This is up from 58% last fiscal.

E-passport

An E-passport with an embedded chip will be rolled out.

Digital university

Finance Minister Nirmala Sitharaman on Tuesday proposed to set up a digital university to provide education that will be built on a hub and spoke model

NABARD funds

Fund to be facilitated through NABARD to finance startups for agriculture and rural enterprise, relevant for farm produce value chain.

Kisan Drones

Use of Kisan Drones to be promoted for crop assessment, digitization of land records, spraying of insecticides and nutrients

PM Awas Yojna

80 lakh affordable houses will be completed at ₹44,000 cr under PM Awas Yojna in 2022-23.

2,000 km of Rail Network

2,000 km of the rail network to be brought under the indigenous world-class technology KAWACH, for safety and capacity augmentation.

Access to Tap Water

60,000 crore allocated for providing access to tap water to 3.8 crore households

ECLGS will be extended

Emergency Credit Line Guarantee Scheme (ECLGS) will be extended up to March 2023, the guaranteed cover will be expanded by ₹50,000 crores to total cover of ₹5 lakh crores.

One Station One Product

One Station One Product to be popularized to help local Businesses and supply chains.

One class, one TV channel’ program

‘One class, one TV channel’ program of PM eVIDYA will be expanded from 12 to 200 TV channels. This will enable all states to provide supplementary education in regional languages for classes 1 to 12

PM Gati Shakti

PM Gati Shakti is driven by 7 engines: roads, railways, airports, ports, mass transport, waterways, and logistics infra.

Production Linked Incentive (PLI) Scheme

Production Linked Incentive (PLI) Scheme for achieving AatmaNirbhar Bharat has received an excellent response.

400 Vande Bharat Trains

400 Vande Bharat trains in the next three years.

Economic Growth

India’s economic growth in the current year is estimated to be 9.2%, the highest among all large economies.

Air India sale

Strategic transfer of ownership of Air India has been completed.

Also Read:- Extended Due Date for GST Return Annual (GSTR 9/ 9C) for FY 2020-21

Also Read:- New IT Rules For 8AD on Computation of Capital Gain u/s 45(1B) of IT Act: CBDT Notifies

Also Read:- What Documents Required for GST Registration in 2021?

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