Finance Minister, Mrs. Nirmala Sitaraman rises at 11.02 a.m. to present the fourth Union Budget of the NaMo-NiSi Team of the current Government.
1. India’s growth estimated to be at 9.2%, highest among all large economies
2. LIC public offer will be done shortly.
3. Strategic ownership of Air India has been completed.
4. Strategic partner has already been selected for sell-out of Neelanchal Ispat Nigam.
5. Government’s goal is complementing macro-growth with micro-all-inclusive welfare, digital economy and fin-tech, tech-enabled development, energy transition and climate action.
6. Focus areas of Budget; PM Gati Shakti which will include:
7. Under the PM Gati-shakti plan
8. Focus on public investment to modernize infrastructure over the medium term, leveraging tech platform of Gati Shakti via a multi-modal approach
9. Boost for Railways under the Gati Shakti plan 400 new-generation Vande Bharat trains will be developed and manufactured in next 3 years.
10. PLI schemes in 14 sectors with potential to create 60 lakh new jobs, and additional new production of INR 30 lakh crore
11. Chemical free natural farming to be promoted.
12. Year 2023 to be promoted as the year of millets; drones to be installed for agriculture monitoring.
13. Five river linking projects have been finalised.
14. MSME Portals’ scope to be widened and interlinked.
15. MSME guarantee cover expanded by INR 50,000 crores. ECLGS to be extended up to March 2023
16. Credit Guarantee Trust scheme to get more funds.
17. For the education sector
18. Drone Shakti as a service for start-ups.
19. For the farmers
20. Rationalised and comprehensive scheme to be implanted to reduce reliance on oil seed imports
21. Three missions focussing on Nari Shakti launched.
22. INR 16,000 crores for providing access to tap water to 3.8 crore homes.
23. National Health Register to be rolled out.
24. Digital Push:
25. Data exchange among all-mode operators to be brought on Unified Logistics Interface Platform; This will
26. The issuance of E passports using embedded ship and futuristic technology will be rolled out in 2022-23 to enhance the convenience for the citizens in their overseas travel
27. New Battery swapping policy to be introduced with interoperability standards to boost EV ecosystem. More charging stations to promote EV.
28. One Nation – One Registration to be promoted.
29. A high-level committee for urban planners and economists to be formed for recommendations on urban capacity building, planning implementation, and governance.
30. Amendments for the Bankruptcy Code
31. Scheme for design led manufacturing to be launched for 5G ecosystem as part of PLI scheme to enable affordable broadband and mobile communication in rural and remote areas.
32. For a self-reliant defence sector
33. Allocations for PM Awas Yojana
34. Contracts for laying optical fibre in villages to be awarded under Bharat-Net project under PPP in 2022-23
35. National Ropeways Development Programme to be taken up in PPP mode with the aim to improve connectivity, besides promoting Tourism
36. Digital rupee, using block chain, to be launched by RBI in 2022-23
37. India to launch sovereign green bonds- Funds will be used for projects that will help reduce carbon intensity of the economy. Sovereign green bonds will be part of government’s borrowing programme in FY 23. Proceeds are to be deployed in public sector projects.
38. Capital expenditure is being stepped up to INR 7.5 lakh crore.
39. Budget estimates for 2022-23; Total expenditure estimated at INR 39.45 lakh crores, total income (other than borrowings) estimated at INR 22.84 lakh crores.
40. Revised fiscal deficit is estimated at 6.4% of GDP for 2022-23
41. In 2022, 100% of 1.5 lakh post offices will come on core banking system. Post Office customers to get access to net banking, ATMs and more
42. With Post Office net banking facility in all branches, account holders will be able to make online deposits in PPF, NSC and other accounts
Direct Tax proposals:
1. New provision to file updated return if anything is missed out by assesse in the original return; can be filed within 2 years of the relevant assessment year.
2. Reduced Minimum Alternative Tax for co-operatives from 18% to 15% to be in in par with corporates, and surcharge to be reduced from 12% to 7% for co-operatives having income from INR 1 crores to INR 10 crores.
3. Payment of annuity to the guardians of differently abled
4. Increase the tax deduction limit of employees’ contribution to pension scheme to 14% from 10% for state government employees to be in par with central government employees.
5. Tax incentives to eligible start-ups extended for one more year up to 31st March, 2023.
6. To opt for Concessional tax rate under sec 115AB, sunset has been extended up to 31 March 2024 from current 31 March 2023
7. Any income from transfer for any virtual digital asset will be charged at 30% without any deduction other than cost of acquisition.
8. Loss on sale of virtual digital assets (read: including cryptocurrencies) will not be allowed to be set-off against any other income.
9. TDS @ 1% on transfer of virtual digital asset transfer above a threshold limit; Gift of virtual digital assets will be taxed in the hands of the recipient.
10. To opt for Concessional tax rate under sec 115AB, sunset has been extended up to 31 March 2024 from current 31 March 2023
Indirect Tax proposals:
1. The gross GST collections for the month of January 2022 are INR 1,40,986 crores which is the highest since the inception of GST.
2. Few changes are made in the customs tariff.
CA. Sanjay Thampy | FCA, Grad. CWA, CS, DBM | firstname.lastname@example.org