Nirmala Sitharaman, the Finance Minister, presented her fourth Budget today. The Budget speech by FM Sitharaman began at 11:00 a.m. in Parliament. This is the tenth Budget of the Narendra Modi government, and the second paperless budget in light of the ongoing Covid-19 pandemic. In her talk, FM predicted that India's economic growth in FY22 would be 9.2%, the highest among all large economies. Due to increased immunizations, she noted that India is in a strong position to endure difficulties. Let us now have a glance at the key highlights of Union Budget 2022-23 -
1) Taxpayers can now file an updated return within 2 years from the relevant assessment year to declare/correct income that may have been missed/incorrectly reported before.
2) Income from virtual digital assets is now subject to taxation. Gains will be taxed at 30% without any deductions, except the cost of acquisition. With that, TDS at 1% to be deducted on the transaction value of transferring virtual digital assets will be implemented.
3) The RBI will issue digital currency in 2022-23, utilizing blockchain and other technologies. The economy will benefit greatly as a result of this.
4) The Union Budget aims to build the groundwork and provide a framework for the economy for the following 25 years, from India's 75th to India's 100th (under Amrit Kal).
5) The budget will be focused on four pillars: productivity, climate action, investment funding, and PM Gati Shakti Plan (PM GatiShakti will inform the general public and business community about forthcoming connectivity projects, as well as other commercial hubs, industrial areas, and the surrounding environment. Gati Shakti also opens the prospect of future economic zones).
6) The ECLGS program will be extended through March 2023. To assist MSME sector funding needs, the guaranteed cover would be increased by Rs 50,000 crores, bringing the total cover to Rs 5 lakh crores.
7) Draft DPRs for five river linkages have been finalized: Damanganga-Pinjal, Par-Tapi-Narmada, Godavari-Krishna, Krishna-Pennar, and Pennar-Kaveri. Once the recipient states have achieved an agreement, the Centre will assist with implementation.
8) A 5G spectrum auction will be held in 2022 for private companies to roll out 5G telecom services in FY 2022-23.
9) 400 new generation Vande Bharat trains with better efficiency to be brought in and 100 PM Gati Shakti Cargo terminals to be developed during next 3 years.
10) The guaranteed cover will be To facilitate domestic manufacturing for the ambitious goal of 280 GW of installed solar capacity by 2030, an additional allocation of Rs 19,500 cr for PLI for manufacturing of high-efficiency modules with priority to fully integrate manufacturing units to solar PV modules will be made.
11) Cooperative societies will benefit from a drop in the surcharge rate from 12 percent to 7% for income up to Rs 10 crores.
12) The tax deduction limit for both Centre and State government employees would be raised from 10% to 14% to support state government employees with their social security benefits and bring them on a level with Central government employees.
13) Capital expenditures will be increased by 35.4 percent, from Rs 5.54 lakh crore in the current fiscal year to Rs 7.50 lakh crore in 2022-23. In 2022-23, the budget will be 2.9 percent of GDP.
14) Surcharges on any LTCG are capped at 15%.
15) To give a digital push, all post offices would be brought into the main banking system.
16) The LIC IPO is scheduled to happen soon.
Although there was no change in the income tax slab rate for individuals and others in view of rising inflation, the ambition for a digital and progressive Indian economy was an overall positive thing in the Union Budget 2022.
- TEAM IFA