NEW DELHI : Finance Minister, Nirmala Sitharaman, has presented the Union Budget 2022 in the parliament today, i.e., February 1, 2022. Hit hard by the pandemic, the taxpayers especially middle class were expecting some tax relief in this budget so that they can have more disposable income in their hands to invest and consume more. As now finally the Budget has been announced, it is the time to check what actually has been proposed by the Government. The major announcements which have been made in this Budget are as under: –
1) *GDP growth* for FY 22 expected to be *9.2%,* the *highest* for any large economy.
2) *PLI* (Production Linked Incentive scheme) in *14 sectors* for Aatmanirbhar Bharat to create *6 million jobs* , additional allocation of *Rs 19,500 crore* for PLI in solar PV module manufacturing.
3) Promoting *Fintech and digital economy* a focus area for this Budget.
4) *75 digital banking systems* in *75 districts* by scheduled commercial banks.
5) *IBC* to be amended to improve efficiency of resolution process including cross border.
6) *Core Banking Services* to start in *Post offices*
7) PM *Gati-shakti* masterplan Has scope to enhance *Multimodal communication* through 7 engines, 2000 km of rail network to be brought under *KAVACH* & Highway network to grow by *25,000 km* in FY23.
8) Contracts for implementation of *multimodal logistics* parks at 4 locations to be awarded in 2022-23, in *PPP Mode*
9) *ECLGS* (Emergency Credit Line Guarantee Scheme) to be extended upto March 2023, guaranteed cover extended by another *Rs 50,000 crore*
10) *8 million* new dwelling in rural, urban areas to be completed under *PM Awas yojana*
11) *Rs 2.37 trillion* worth of *MSP direct payments* to wheat and paddy farmers.
12) *Rs 2 trillion* outlay for MSMEs, Additional loans for *13 mn MSMEs.*
13) *Rs 48,000 crore* allocated to housing projects under *PM Housing Scheme* for FY23, *Rs 1,500 crore* allocated for development of the Northeast in FY23 & Desh stack *e-portal* to be launched to promote *Digital infra* 14) *E-passports using embedded chips and futuristic tech will be rolled out in 2022*15) *New provision* to file updated return within *2 years* of relevant assessment year.
16) *Alternate minimum tax* for cooperative societies down from 18.5% to *15%*
17) *Tax deduction limit* for *state govt employees* to *NPS* raised from 10% to *14%*
18) *Surcharge* on Corporate tax *pruned* from 12% to *7%* Surcharge on *transfer of long-term capital gains tax* capped at *15%*
19) *Tax exemption* to start-ups extended to March 2023.
20) *No change in Income Tax Slab during the Financial Year 2022-23*. 21) Income fron the transfer of virtual digital asset shall be taxes at 30% with no deduction of expenses.
22) Gift of Virtual Digital Assets to be taxes at receiver’s end.
23) *Surcharge on long term capital gain is capped at 15%*
24) No benefit of set-off of loss allowable on income discovered during search and siezure*
25) Surcharge or cess is not allowable as business expenditure*
26) *Gross GST collection* for January 2022 at a *record Rs 1.41 trillion*
27) *Electric Vehicles* battery-swapping policy to be brought out with interoperability standards.
28) Concessional duty *on import of capital goods* to be phased out.
29) Duty on *unpolished diamonds* to be *reduced to 5%*
30) Customs duty on *steel scrap extended by a year*
31) RBI led *digital rupee using blockchain* to be launched in FY23, *1% TDS* on *transfer of virtual digital assets* & income to be taxed at *30%*
32) *68% of capital outlay* for Domestic defence industry.
33) Revised Fiscal Deficit *6.9% of GDP* in FY22 as against 6.8% in Budget estimates, Fiscal deficit at *6.4% in FY23*
34) *Total expenditure* in FY23 estimated at *Rs 39.45 trillion* ; *total resources mobilisation* to be *Rs 22.84 trillion* other than borrowing.
