The Union Minister of Finance Nirmala Sitharaman presented the Union Budget 2022 on February 1, 2022. Here are the sector wise highlights of the Union Budget 2022;

1. Tax and Economy

Fiscal Deficit is 6.9% of the GDP.

Reduced AMT rates for Co-operatives from 18.5% to 15%

Reduced surcharge for Co-operatives with total income of 1cr to 10Cr

Tax relief for persons with disability: Allow annuity payment to differently abled dependents when parents attaining age of 60 years

Deduction for National Pension Scheme for State Government employees u.s 80CCC made at par with Central Govt.

Start-ups established before 31.03.2023 (earlier – 31.03.2022; now extended by 1 year) will be provided tax breaks

Last date for commencement of manufacturing for claiming lower tax regime under Section 115BAB to be 31.03.2024 (earlier 31.03.2023; now extended by 1 year)

Virtual digital assets (Cryptocurrency):
Income from transfer of virtual digital assets to be taxed at 30%; No deduction for expenses other than cost of acquisition; No set off of losses. TDS @ 1% on consideration above specific threshold. Gift to be taxed u.s 56(2)(x)

No repetitive appeals for common question of laws.

Off-shore banking units/ IFSC income to be provided exemptions.

Surcharge of certain AOPs to be capped at 15%.

Surcharge on Long Term Capital Gains on any assets to be capped at 15%.

Health and education cess not allowable as business expenditure u/s 37.

No set off of losses against undisclosed income detected during search.

2. Infrastructure Sector

PM Gati Shakti National Master Plan budget allocation Rs. 20,000 Crores.

National Highways Expansion by 25000 kms.

Master plan on expressways to be formulated in the FY 2022-23.

400 New Generation Vande Bharat Trains to be manufactured in the next 3 years.

Parvat Mala Project for 60 kms of ropeway projects.

Multi Model Connectivity in Metro systems.

100 Gati Shakti Cargo Terminals in the next 3 years.

3. Agriculture Sector

Procurement of crops benefiting more than 1 Crore farmers for wheat, paddy, rabi and kharif.

Blended Capital funding to be facilitated by NABARD to finance Agricultural and Rural startups.

2.37 lakhs crore towards minimum support price.

Promotion of chemical free natural farming across the country.

Post harvest value addition for millet products.

Use of Kisan Drones for the assessment of crops and pesticides spray.

Ken-Betwa river linking project at a cost of Rs. 44,000 Crores which will benefit 9 lakh hectare of farmer land.

4. Education Sector

Digital Universities will be established in different Indian languages based on the network hub model.

One class-One tv channel to be expanded from 12 to 200 TV channels for providing supplementary education in all regional languages to make up for the loss of education due to covid.

5. Defence Sector

68% Capital procurement budget for domestic procurement.

Defence R&D to be opened for startups, private industries and academia. 25% of the R&D budget allocation for this.

Private industry to be encouraged to take up design and development of military platforms and equipments.

Healthcare Sector

National Digital Health System to be rolled out.

National Tele Mental Health Program to be set up.

23 Tele Mental Health Centres of excellence to be established.

Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0 for the integrated benefit of women and children.

Har Ghar, Nal Se Jal to benefit 3.8 crore households. Rs. 60,000 Crore budget allocation.

6. Digital Sector

Blockchain technology to be used by RBI to introduce “Digital Rupee”.

Virtual Digital Assets made taxable at 30%(Cryptocurrency).

Gift of virtual digital assets made taxable in the hands of receiver.

75 digital banking units to be set up across 75 districts.

Read full Budget Speech 2022 at

https://www.indiabudget.gov.in/doc/budget_speech.pdf

To know more about us visit us at

https://www.casanchar.com

Leave a Reply