Finance Minister Nirmala Sitharaman presented the 2022 Budget on 1st February at 11 am. She announced the budget from a made in India tablet which was brought in a red bag with a golden Indian Emblem on it. Primary focus was laid on infrastructure and job creation.
Let us Highlight the key takeaways from the Budget 2022:
- Taxpayers can now update errors made while filing taxes within 2 years of the assessment year.
- Alternate minimum Tax rates reduced for Co-operatives from 18.5% to 15%
- Surcharge reduced for Co-operatives with total income of 1cr to 10cr
- Tax relief for persons with disability – will 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
- 100 New Cargo Terminal will be built in the next 3 years.
- Under KAVACH, 2000 Km of Road network will be built.
- 400 New Vande Bharat Trains will be introduced in the next 3 years.
- NABARD to fund agricultural and rural startups with blended capital.
- Direct payment of Rs. 2.37 lakh crores for MSP (Minimum support price).
- Rs. 44,000cr to be allocated for Ken Betwa river linking project which will benefit 9.0 lakh hectare of farmer land.
- From 12 to 200 TV Channels will be dedicated to provide Supplementary Education under eVIDYA for class 1 to 12.
- Tele Mental Health programs to be launched for counselling Mental health issues.
- Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0 to be put forth to benefit women and children.
- Har Ghar, Nal se Jal yojana to cover 3.8 cr households where Rs. 60,000 cr will be allocated.
Budget 2022 did not grant any extra benefits to the salaried employees, although majorly tried to ease entrepreneur and startups expedition. Fiscal deficit is 6.9% of the GDP.