INDIAN UNION BUDGET 2022 KEY HIGHLIGHTS

The Hon’ble Finance minister of India presented the Union Budget for the Financial Year 2022-23, being the fourth budget of the BJP government in the second face of their services.

Here are the Key highlights of the Union Budget 2022:

1. Crypto currency to be taxed at 30 % special rate, no deduction allowed.
   Online digital assets to be taxed @ 30%. No deductions or set off of losses. Flat tax at 30% will be levied without any deduction. No deduction except cost of acquisition. TDS at 1% to be deducted on transaction value. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except cost of acquisition
2. Corporate surcharge to be reduced from 12% to 7%
3. Health and Education Cess and Surcharge shall not be allowed as business expenditure
4. Propose to cap surcharge for AOPs at 15%. Also cap surcharge on LTCG arising from transfer of assets at 15% to give a boost to startup community
5. No Change in Slab Rates for Individuals and others
6. If undeclared income detected during search, no deduction will be allowed on such additional income
7. Propose a provision to file an updated return with payment of additional tax to correct any errors in assessment. Assesses can declare income that may have been missed out previously. New provision introduced to file updated ITR within 2 years in case of any omission or mistake
8. To reduce surcharge on co-operative societies to 7% from 12% for income between Rs 1 cr to Rs 10 cr
9. FM said despite of Covid Pandemic GST collection has touched all time high from it’s inception. FM gave credit to the recovering economy and administrative measures taken by the revenue department. Gross GST collection in Jan 2022- 1,46,986 cr. Highest since inception of GST
10. Persons with disability – Parents and Guardians can avail annuity even in their life time
11. Tax Deduction limit for state govt employees to NPS raised to 14% from 10%
12. Incentives for startups: period of incorporation extended by a year to 2023 to avail of tax benefits. For corporates, Extension also granted for new companies to setup manufacturing facilities to 2024 from earlier 2023
13. Section 115BAB the date for setting up business increased by one year to 2024. Incentive for newly incorporated manufacturing industry a concessional tax rate of 15% was introduced
14. Issuance of E-passports will be ruled out in 2022-23 to enhance convenience for citizens
15. India Economic Growth in FY22 to be at 9.2%. Economic growth estimated at 9.2%
16. Digital rupee to be issued using blockchain and other technologies; to be issued by RBI starting 2022-23. This will give a big boost to the economy
17. Children mostly in Govt schools have lost 2 years of formal education. High quality e content will be developed in regional languages. A digital university will be setup. Will be built on a network hub-spoke model
18. Teachers will be equipped with digital tools. Digital University will be set up
19. Public issue of LIC is expected shortly. Others are also expected shortly. This budget will continue to provide impetus for growth- futuristic & inclusive
20. Speed in coverage of vaccination has helped in economic recovery
21. Budget to focus on 4 pillars – productivity, climate action, financing investments & PM Gati Shakti plan
22. PLI in 14 Sectors to create 50 lakh new jobs and additional production of Rs 30 lakh Cr
23. We are in the midst of the Omicron wave, the speed of our vaccination campaign has helped greatly. I am confident that ‘Sabka Prayaas’, we’ll continue with strong growth
24. This Budget (2022-23) will benefit, youth, women, farmers, SC, ST… ; shall be guided by PM Gati Shakti master plan
25. Contracts for 4 multimodal logistics parks in PPP mode will be awarded in 2022-23
26. The National Highway network will be expanded by 25,000 kms in 2022-23
27. MSMEs: ECLGS has provided much needed credit. Scheme to extended to March 2023, cover to be expanded by 50,000 cr to 5 lakh cr. With the additional amount earmarked for hospitality sector
28. Rs 20000Cr to boost Transport Infra
29. Rs 2.73 lakh Cr as Public Procurement/MSP for Wheat &Paddy
30. Drones for Agriculture
31. ECLGS till March 2023,with total cover of Rs 5 lakh Cr
32. Unified Logistics Interface Program for JIT Inventory Management
33. Railways to fuel Logistics for Small Farmers
34. 2000km under Kawach 400
35. Vande Bharat Trains
36. 100 Cargo Terminals
37. Productivity-linked incentive schemes in 14 sectors have received excellent response; received investment intentions worth Rs 30 lakh crore
38. Procurement of wheat in Rabi season 2021-22 and the estimated procurement of paddy in Kharif season 2021-22 will give cover 1208 lakh metric tonnes of wheat & paddy from 163 lakh farmers& Rs 2.37 lakh crores will be the direct payment of MSP value to their accounts
39. Emergency Credit Line Guarantee Scheme (ECLGS) extended till March 2023. Guarantee cover for ECLGS will be expanded by Rs 50,000 cr to a total of Rs 5 lk cr.
40. MSMEs such as Udyam, e-shram, NCS & Aseem portals will be interlinked, their scope will be widened… They will now perform as portals with live organic databases providing G-C, B-C & B-B services such as credit facilitation, enhancing entrepreneurial opportunities
41. National tele mental health program to be launched, steered by NIMHANS, National Tele Mental Health Centres of Excellence to be launched
42. Will promote startups for drone manufacturing
43. Data exchange among all-mode operators to be brought on Unified Logistics Interface Platform, designed for API will enable, Efficient movement of goods, Reduce logistics costs and time, Assist Just In Time inventory management and Eliminate tedious documentation
44. PM E-Vidya to be Expanded to 200 TV channels in Regional Languages with focus on High quality e-content
45. 2 Lakh Anganwadis to be Upgraded
46. 8.7Cr Households have access to Har Ghar Jal,with
47. 5.5Cr getting Drinking Tap Water
48. Rs 50000Cr to cover 3.8Cr Households in 2022-23,under Har Ghar Jal
49. 80 Lakh Beneficiaries identified under PM Awas Yojana, for 40000Cr
50. Propose to setup 75 digital banking units in 75 districts by scheduled commercial banks
51. Rs 6,000 crore programme to rate MSMEs to be rolled out over 5 years
52. 1.5 lakh post offices to be connected to core banking
53. A network of 23 tele mental health centres of excellence with Nimhans being the nodal centre and IIIT Bangalore providing technology support
54. Push for EVs by Battery swapping policy will be brought out and interoperability standards will be formulated
55. Accelerated Corporate Exit for voluntary winding of company from current 2yr to less than 6months
56. Digital university to be set up to provide education; to be built on a hub and spoke model
57. High level committee of urban planners, economists & others will be set up to facilitate reforms. Necessary amendments in IBC to be made for more efficient resolution; to also enable cross border insolvency resolution
58. Fund to be facilitated through NABARD to finance startups for agriculture and rural enterprise, relevant for farm produce value chain. Startups will support FPOs and provide tech to farmers
59. 2,000 km of rail network to be brought under the indigenous world-class technology KAWACH, for safety and capacity augmentation
60. Spectrum auctions will be conducted in 2022 to roll out 5G services. Scheme for design led manufacturing in 5G to be launched as part of PLI scheme
61. Special economic zone policy to be replaced with a new legislation
62. Battery Swapping Policy will be brought out & inter operational service will be formulated. Private sector will be encouraged to create sustainable and innovative business models for battery and energy as a service, improving the efficiency in the EV ecosystem
63. ‘One Nation, One Registration’ will be established for anywhere registration to facilitate ease of living & doing business:
64. Implementation of Ken Betwa Linking project at est. cost of Rs. 44,605 Cr. to be taken irrigation benefits to 9.0 lakh hectare farm land
65. 68% of the capital procurement budget for Defence to be earmarked for domestic industry to promote Atma Nirbharta and reduce dependence on imports of defence equipment. This is up from the 58% last fiscal
66. Animation, Visual Effects, Gaming and Comics (AVGC) sector offers immense potential to employ youth. An AVGC promotion task force with all stakeholders will be set up to recommend ways to realise this and build domestic capacity for serving our markets and the global demand
67. SEZ Acts will be replaced with a New Act. SEZ (Special Economic Zones) Act will be replaced with new legislation…for the development of enterprise and hubs… It will cover the existing industrial enclaves and enhance the competitiveness of exports
68. To achieve 280 GW of solar power by 2030, Additional allocation of Rs 19,500 towards solar PLI for mfg of high efficiency modules
69. Amendments for the Bankruptcy Code – IBC amendments to enhance efficiency of resolution process – Facilitate cross-border insolvency resolution – To speed up voluntary winding up of companies
70. Modern building by-laws will be introduced
71. Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) to be revamped with required fund infusion Will facilitate additional credit of Rs. 2 lakh crore for Micro and Small Enterprises and expand job opportunities
72. Effective Capital Expenditure of the Central Govt is estimated at Rs 10.68 lakh crores in 2022-23, about 4.1% of GDP: Public expenditure needed to pump prime demand and crowd in private investment
73. 5 existing academic institutions for urban planning to be designated as Centre for Excellence with endowment fund of Rs 250 cr
74. Sovereign green bonds will be used to finance green projects
75. To setup an expert committee to examine holistic regulatory framework for VCs, PEs and look at areas of friction
76. Capital Expenditure to increase 35.4% from ₹5.54 lakh crore to 7.50 lakh crore
77. Total expenditure is estimated at Rs39.45 lakh cr Receipts are estimated at Rs22.84 lakh cr. FY’23 fiscal deficit target at 6.4% of GDP vs 6.9% (RE)
78. Rs 1 lakh crore financial assistance to states to be provided in 2022-23 to catalyse investments 

Source:-CA Dr.Raj Chawla