Budget 2022 Highlights: No Changes In Income Tax; 30% Tax On Crypto
On Tuesday, finance minister Nirmala Sitharaman presented the Union Budget for the financial year 2022-23. Nirmala Sitharaman gave her fourth budget speech after 2019,2020, and 2021. She began her speech with Amrit Kal and said that the budget lays down the path of India for the next 25 years from 75 to 100 years of independence. FM Nirmala Sitharaman concluded her shortest budget speech. After the budget speech, the Parliament has been adjourned till 4:30 pm tomorrow.
“During Amrit Kaal, our government aims to achieve the vision for India at 100 set out by the Prime Minister in his Independence Day Address,”
“I am confident that with sabka prayas we will continue our efforts,”
Key highlights from Nirmala Sitharaman’s budget 2022 speech today
- Key areas for budget 2022: PM Gati Shakti, Inclusive Development, Climate Action and Energy Transition.
- India’s growth is around 9.27% and we are in a strong position to withstand challenges.
- Public issue of LIC is expected shortly.
- The National Highway Network in India will be expanded by 25,000 km in 2022-23.
- Make In India initiative will create 6 million jobs in India.
- PM Gatishakti master plan for expressways will be formulated in 2022-23.
- 1,000 LMT Paddy is likely to be procured which will benefit over 1 crore farmers, mainly farmers dealing in Paddy, Kharif, and Rabi crops.
- Railways to develop efficient logistics for small farmers and enterprises. One Station, One Product Concept to be followed.
- Chemical-free farming to be promoted in the country.
- As 2022 will be the year of Millet, use of kisan drones will be promoted for spraying of insecticides and crop assessments.
- MSMEs including Udyam, e-shram, NCS and Aseem portals will be interlinked. They will perform as portals with providing G-C, B-C and B-B services including credit facilitation.
- The Emergency Credit Line Guarantee Scheme (ECLGS) has been extended till March 2023. The scheme was introduced by the Finance Ministry to help Micro, Small and Medium Enterprises amid the covid-19 pandemic. The credit guarantee cover expanded by Rs 50,000 crore.
- Digital DESH e-portal will be launched to skill, upskill, and reskill our India’s youth. One Class, One TV Channel to be increased from 12 to 200 TV channels to provide education to students from class 1 to 12 in regional languages.
- A battery swapping policy will be brought out and special mobility zones will be developed for electric vehicles.
- Allocation of Rs 60,000 crore for Nal Se Jal Scheme. 5 river link projects across various states.
- Government to introduce a framework which allows consumers to choose from more than 1 power distribution company, ending monopolies in the power sector.
- National Tele Mental Health Programme to be launched for mental health problems worsened due to the covid-19 pandemic.
- Funds from NABARD will be used to finance startups in the agriculture and rural sector which are relevant for farm produce value chain. The government’s vision is to give all villages and residents access to e-services as people in urban areas.
- Proposal to set up 75 digital banking units in 75 districts by scheduled commercial banks.
- Spectrum auction will be conducted in 2022 for the rollout of 5G mobile services as part of PLI scheme.
- 400 new generation Vande Bharat trains would be developed and manufactured in the next 3 years.
- Proposal to launch a digital currency for financial year 2023 that will be issued by the Reserve Bank Of India. The digital currency to be generated using the blockchain technology.
- Surcharge on co-operative societies reduced from 12% to 7% for income between Rs 1 crore-Rs 10 crore.
- Proposal to allow a payment annuity and lump-sump amount to dependents of differently-abled, during lifetime of parent or guardian reaching 60 years.
- Virtual digital assets brought under the tax regime. Any income from transfer of such asset to be taxed at 30%
- Proposal for a new provision to file an updated return on payment of additional tax which can be filed within 2 years.
- Central and state government employees tax deduction limit to be increased from 10% to 14% to bring state government employees at par with the central government employees in terms of social security benefits.
- Tax deduction limit to be reduced for central government employees from 18% to 15% in their contribution to NPAs.
- Gross GST collection for January 2022 (Rs 1,40,986 crores) highest since the inception of the GST regime.
- Custom reforms announced by the finance minister. Proposal for applying a moderate tariff of 7.5%. Custom duty on cut and diamond reduced to 5% and custom duty on imitation jewellery duty and critical chemicals reduced. Duty on umbrellas raised to 20% with exemptions to withdrawn parts of umbrellas.