BUDGET 2022: Highlights of Union Budget 2022

The Union Finance Budget 2022 presented on 1st February 2021 at 11:00 AM in the Lok Sabha. Now, this is the second time after Union Budget 2021, when the Budget will be presented and read by our Finance Minister in Paperless Form.

⇒ NO change in personal tax rates/slabs or increase in any exemption/deduction limits in FM’s speech

⇒ Current tax benefits for startups, to be extended by 1 more year, which were offered redemption of taxes for 3 consecutive years

⇒ Sensex Up 890 Points eyes 59,000 as FM presents Budget 2022

⇒ Gift of cryptocurrencies to be taxed at receiver’s end

⇒ Any surcharge or cess is not allowable as Expenditure Says FM

⇒ Transaction in cryptocurrency, [virtual digital asset] to be taxed at 30%. No deduction except cost of acquisition.

⇒ TDS at 1% to be deducted on transaction value.

⇒ Income from the transfer of Virtual Asset shall be taxed at a rate of 30%. COA shall be allowed as a deduction.

⇒ Tax Incentives for co-ops

• Alternate Minimum Tax for cooperative societies to be cut to 15%.
• Proposal will reduce surcharge on cooperative societies to 7%, for those whose income is between Rs 1 crore and Rs 10 crore.

⇒ MAT rates for co-operative societies to be brought at 15%

⇒ Budget2022 proposes to allow a window to rectify returns for last 2 assessment years by paying the missing taxes to reduce litigation.

⇒ New provision for filing updated return from 2 years of relevant AY to be introduced on Additional Fees

⇒ Digital rupee, using blockchain, to be launched by RBI in 2023

⇒ Rollout of digital crypto currency based on blockchain technology by RBI now gets node from FM in Budget

⇒ India to launch sovereign green bonds

⇒ SEZ (Special Economic Zones) Act will be replaced with new legislation taking states on the board.

⇒ National Ropeways Development Programme to be taken up in PPP mode with the aim to improve connectivity, besides promoting Tourism says FM.

⇒ Contracts for laying optical fibre in villages to be awarded under BharatNet project under PPP in 2022-23

⇒ Focus on Self reliant defence sector:

• Defense R&D will be opened up for industry
• Startups and academia with 25% of defense R&D budget.
• 68% of capital procurement budget in defence will be earmarked for domestic industry in 2022-23
• Private industry will be encouraged to take up the design and development of military platforms and equipment in collaboration with DRDO and other organizations through SPV model.

⇒ Spectrum auction will be conducted in 2022 for the rollout of 5G mobile services by private telecom providers

⇒ Amendments for the Bankruptcy Code to speed up voluntary winding up of companies

• IBC amendments to enhance efficiency of resolution process
• facilitate cross-border insolvency resolution
• To speed up voluntary winding up of companies

⇒ Cross border insolvency – a much-awaited measure to complete the code to be introduced

⇒ Rs 48, 000 crore is allotted for PM Awas Yojana

⇒ Budget 2022 Proposes to accelerate voluntary winding up of companies

⇒ 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: FM 

⇒ Use of Kisan Drones to be promoted for crop assessment, digitization of land records, spraying of insecticides and nutrients: FM 

⇒ Paperless End to End Billing System to be introduced in Govt Departments for Procurement

⇒ Battery Swapping facility to be introduced in urban areas. This will pave the way to EV Ecosystem.

⇒100% of all POST offices to come within the core banking services between post office accounts and bank accounts. This will enable inter-operability and financial inclusion

⇒ E-Passports to be launched in year 22-23 to enhance the convenience for the citizens in their overseas travel.

⇒ With 1486 union laws repealed, Ease of Doing Business 2.0 will be launched. We will follow the idea of trust based government: FM

⇒ The coverage of Har Ghar Nal se Jal is 8.7 crores out of which 5.5 crore households were provided with tap water in the last 2 years itself: FM

⇒ 80 lakh houses will be completed In 2022-23 for identified beneficiaries of PM Awas Yojana: FMTo improve quality of life, Aspirational Districts have translated into success. 95% of 102 districts have made significant progress in key sectors: FM

⇒ 60,000 houses will be identified as beneficiaries for PM Awas Yojana in rural & urban areas: FM

⇒ An open platform for the national digital health ecosystem will be rolled out

⇒ Rs. 2.37 lakh crore worth of MSP direct payments to wheat and paddy farmers will be Given

⇒ Benefits Given to India’s farmers by FM

• Use of Kisan drones will be promoted for crop assessment
• Chemical-free natural farming to be promoted in India
• Digitization of land records, spraying of insect pesticides
• Rs 2.37 lakh crore worth of MSP direct payments to wheat and paddy farmers will be Given

⇒ FM Extends ECLGS upto March 2023, guaranteed cover extended by another Rs 50,000 crore. Guarantee cover to be enhanced to Rs 5 lakh cr to help MSMEs mitigate #pandemic impact.

⇒ National Skill Program to be aligned with Industry needs

⇒ FM mentioned how to boost Railways under the Gati Shakti plan

⇒ 400 new-generation Vande Bharat trains will be developed and manufactured in next 3 years.

⇒ One station, one product’ concept will be popularised to help local businesses.

⇒ 100 new cargo terminals to be developed over the next 3 years, as per PM’s #GatiShakti plan

⇒ Budget to pave way for implementation of reducing dependence on oil seed imports

⇒ PLI schemes in 14 sectors with potential to create 60 lakh new jobs, and additional new production of Rs 30 lakh crore

⇒ Public Issue of LIC Soon

⇒ Focus areas of this Budget

• PM Gati Shakti
• Energy Transition
• Inclusive Development
• Productivity Enhancement
• Sunrise Opportunities
• Climate Action
• Financing of investments

⇒ Strategic transfer of ownership of Air India has been completed Says FM

⇒ India’s growth estimated to be at 9.2%, highest among all large economies; we are now in a strong position to withstand challenges: FM

⇒ FM begins her budget speech by expressing empathy to those who suffered during the pandemic

⇒ Budget Speech Starts