Budget 2022 Highlights: No change in Income Tax slabs, cryptocurrency taxed
It’s once again the time of the year when families – young and old - come together in front of the television, watch the budget of the nation and discuss the good and the bad. Union Finance Minister Nirmala Sitharaman concluded the Budget 2022 speech and here are the highlights:
CONGRESS REACTS TO BUDGET 2022
Opposition Congress reacting to the BJP government's Budget 2022 said that it has let down and betrayed India's salaried and middle-class people by not giving any relief in direct tax measures.
TAX RELIEF FOR SPECIALLY-ABLED PERSONS
The Finance Minister announced tax relief for specially-abled persons. Annuity and lumpsum received to parents or guardians attaining 60 years during lifetime of the disabled person will be eligible for tax relief.
REDUCED CUSTOMS DUTY
For jewellery lovers, customs duty on cut & polished diamonds, gems is set to be reduced to 5%.
Custom duty on imitation jewellery raised.
Custom duty exemption on steel scrap extended by a year.
Custom duty on methanol to be reduced.
Duty concessions on parts of phone chargers, transformers, etc.
NO CHANGE IN PERSONAL TAX SLAB
Nirmala Sitharaman did not mention any change in personal tax slabs.
January GST collection has been the highest since the inception of GST. Rs 1,40,986 crores was in GST for the month of January 2022.
STARTUPS AND TAXES
Period of incorporation extended by one year to help startups avail tax incentives.
DIGITAL ASSETS TO BE TAXED
Any earning from the transfer of any virtual digital asset will now be taxed at 30%.
TAX LIMIT INCREASED FOR CENTRE AND STATE GOVT EMPLOYEES
COOPERATIVE SOCIETIES
Alternate minimum tax to be reduced to 15% for cooperative societies, Finance Minister announces.
TAXPAYERS CAN FILE UPDATE RETURNS WITHIN 2 YEARS
INTEREST-FREE LOANS TO STATES
FISCAL DEFICIT
The revised fiscal deficit is estimated at 6.9% of GDP as against the projected 6.8%. The fiscal deficit is projected to be 6.4% by 2023.
TOTAL NATIONAL EXPENDITURE
Total expenditure in FY23 estimated at Rs 39.45 lakh crore and total resources mobilisation to be Rs 22.84 lakh crore other than borrowing.
EASE OF DOING BUSINESS
NATIONAL DIGITAL HEALTH ECOSYSTEM
DIGITAL RUPEE TO BE INTRODUCED
RBI will issue digital rupee using blockchain technology.
EV BATTERY SWAPPING POLICY
FOCUS ON THE GAMING SECTOR
ONLINE BILL SYSTEM FOR CENTRAL MINISTRIES
An online bill system will be launched to reduce the delay in payments. It will be used by all central ministries: Sitharaman
BHARATNET PROJECT
The Bharatnet project contracts for optical fibre networks will be handed out under PPP model, Sitharaman said.
DEFENCE R&D
Defence Research and Development will now be opened up for private industries and startups.
5G ROLLOUT
Nirmala Sitharaman announced that 5G phone services will be rolled out in the country by 2022-23. The 5G spectrum auction will be held in 2022-23.
KISAN DRONES FOR CROP ASSESSMENT
NORTH-EASTERN COUNCIL
PM development initiatives for Northeastern states will be implemented for the North Eastern Council. It will help youth and women. Existing schemes of the Centre and State will be operational and the PM development initiatives are not a substitute.
Rs 1,500 crore will be allocated towards developmental projects in the Northeast.
E-PASSPORT TO BE ROLLED OUT
The government is planning to roll out e-passports by 2022-23. They will be enabled with chips and futuristic tech to ease international travel.
FOCUS ON MENTAL HEALTH
The Union Finance Minister said that the pandemic has brought focus to the issue of mental health. The government keeping this in mind will launch a national tele mental health programme.
'ONE CLASS-ONE TV CHANNEL' FOR E-EDUCATION
Under the PM eVIDYA scheme, the 'one class, one TV channel' program will be expanded from 12 to 200 TV channels. It will help states provide supplementary education in regional languages for classes 1 to 12.
DIGITAL UNIVERSITY TO BE SET UP
In a boost for digital education, Sitharaman announced plans to establish a Digital University equipped with world-class quality education with personalised learning experience available in various languages.
FM ON FARM PROCUREMENT
CHEMICAL-FREE NATURAL FARMING
The government plans to promote chemical-free natural farming throughout the country. The farm procurement value for FY23 is expected to be Rs 2.37 trillion.
RAILWAYS TO REACH OUT TO SMALL FARMERS
Sitharaman said that Railways will reach out to small farmers and MSMEs with one station, one product facilitating the local supply chain.
'AIR INDIA OWNERSHIP TRANSFER IS COMPLETE'
Addressing the Parliament, Nirmala Sitharaman said, "Towards implementation of the new public sector enterprise policy, the strategic transfer of the ownership of Air India has been completed."
Sitharaman also said that the public issue of LIC is expected shortly.
SITHARAMAN ON AATMA NIRBHAR BHARAT
GROWTH ESTIMATED AT 9.27%
India's growth is estimated to be at 9.27%, Finance Minister Nirmala Sitharaman said while presenting the Budget in Parliament.
NIRMALA SITHARAMAN ARRIVES AT PARLIAMENT
Union Finance Minister Nirmala Sitharaman and several other parliamentarians arrived at the Parliament on the Budget day. The Union Cabinet approved the Budget 2022 during a meeting at the Parliament.
A budget represents the nation’s planning for expenditures and expected earnings for the year to come. Read what the expectations from the Budget were.