Government Imposes New Budget 2022

On February 01, 2022 , Finance Minister of India Nirmala Sitharaman delivered the Union Budget 2022 applicable for the Financial Year 2022-23. The Finance Bill was summarized and read out in the Parliament in front of Hon’ble Speaker and all the Members of Parliament

Annual Finance Budget 2022 Highlights

TAX

RELAXATION FOR CO-OPERATIVE SOCIETIES
AMT reduced to 15% from 18.5% and Surcharge reduced from 12% to7% for Total Income between Rs.1-10 crores
OPTION OF UPDATED RETURN
Provision to correct your error returns, and file an updated return within two years from the end of the relevant assessment year.
NATIONAL PENSION SCHEME
State Govt Contribution to NPS A/c of State Govt employees increased from 10% to 14%

DIGITAL RUPEE

RBI to issue cryptocurrency “Digital Rupee” using Blockchain Technology starting from 2022-23

TAXATION ON VIRTUAL DIGITAL ASSETS

30% on any income from transfer of any Virtual Digital Asset
No deduction of any expense/allowance, except Cost of Acquisition
TDS of 1% on payment made in relation to transfer of such asset
Gift of such asset to be taxed in hands of recipient

INCENTIVES FOR START-UPS

Eligible start-ups incorporated up to 31/03/2023 to get tax incentive for three consecutive years out of first ten years from incorporation.

RATIONALIZATION OF SURCHARGE

15% SURCHARGE ON AOPs
Due to higher surcharge of 37%, companies were reluctant to form AOPs for works contract. Now the surcharge has been capped at15% to bring the such difference on par.
15% SURCHARGE ON LTCG OTHER THAN LISTED EQUITY SHARES
Other LTCG are subjected to a graded surcharge which goes up to 37% Now the surcharge has been capped at 15% on transfer of any type of assets.

PM GATISHAKTI NATIONAL MASTER PLAN

It will encompass the seven engines for economic transformation, seamless multimodal connectivity and logistics efficiency.

ROAD TRANSPORT
National Highways network will be expanded by 25,000 km in 2022-23
SEAMLESS MULTIMODAL MOVEMENT OF GOODS AND PEOPLE
Data exchange among all mode operators will be brought on Unified Logistics Interface Platform (ULIP),designed for Application Programming Interface (API)
MULTIMODAL LOGISTICS PARKS
Contracts for implementation of Multimodal Logistics Parks at four locations through PPP mode will be awarded in 2022-23.
RAILWAYS
Four hundred new-generation Vande Bharat Trains will be developed and manufactured during the next three years.
MASS URBAN TRANSPORT
Design of metro systems, including civil structures, will be re-oriented and standardized for Indian conditions and needs.
PARVATMALA: NATIONAL ROPEWAYS DEVELOPMENT PROGRAMME
Contracts for 8 ropeway projects for a length of 60 km will be awarded in 2022-23.
CAPACITY BUILDING FOR INFRASTRUCTURE PROJECTS
Give technical support to ramp up capacity in planning, design, financing, and implementation management of the PM GatiShakti infrastructure projects.

Digital University

Established to provide access to students across the country for world-class quality universal education with personalized learning experience at their doorsteps.
Available in different Indian languages and ICT formats.
Best public universities and institutions in the country will collaborate as a network of hub-spokes.

AGRICULTURE

DIRECT PAYMENT OF MSP TO FARMERS
Procurement of wheat and paddy in2021-22 will cover 1208 lakh metric tons of wheat and paddy from 163 lakh farmers, and Rs 2.37 lakh crore direct payment of MSP value to their accounts.
REVISED SYLLABUS OFAGRICULTURAL UNIVERSITIES
To introduce natural, zero-budget and organic farming, modern-day agriculture, value addition and management
BLENDED CAPITAL FUND UNDERCO-INVESTMENT MODEL
Facilitated through NABARD, this is to finance startups for agriculture & rural enterprise, which will include support for FPOs, machinery for farmers on rental basis at farm level, and technology including IT-based support.

MSME

ECLGS will be extended up to March 2023 and its guarantee cover will be expanded to total cover of Rs 5 lakh crore
RAMP programme with outlay of Rs 6,000 crore over 5 years will be rolled out
Additional credit of Rs 2 lack crores under CGTMSE Scheme
Udyam, e-Shram, NCS and ASEEM portals will be interlinked, perform as portals with live, organic databases

WELFARE PROGRAMMES

PM AWAS YOJANA
In 2022-23 80 lakh houses will be completed for the identified eligible beneficiaries. Rs 48,000 crore is allocated for this purpose.
PM DevINE
Prime Minister’s Development Initiative for North-East will fund infrastructure and social development projects based on felt needs of the North-East. Initial allocation of Rs 1,500 crore will be made
HAR GHAR, NAL SE JAL
Allocation of Rs 60,000 crore has been made with an aim to cover 3.8 crore households in 2022-23.

EASE OF DOING BUSINESS “EODB 2.0” AND EASE OF LIVING, WILL BE LAUNCHED

E-PASSPORT
Issuance of e-Passports using embedded chip and futuristic technology
CLEAN & SUSTAINABLE MOBILITY
Promote a shift to use of public transport complemented by cleantech and governance solutions, special mobility zones with zero fossil-fuel policy and EV vehicles.
TELECOM SECTOR
Required spectrum auctions will be conducted in 2022 to facilitate rollout of 5G mobile services
ATMANIRBHARTA IN DEFENCE
Defence R&D will be opened up for industry, startups and academia with 25 per cent of defence R&D budget
SOLAR POWER
An additional allocation of Rs19,500 crore for Production Linked Incentive for manufacture of high efficiency modules will be made
AVGC PROMOTION TASKFORCE
The animation, visual effects, gaming, and comic (AVGC) sector offers immense potential to employ youth. Set-up to recommend ways to realize this and build domestic capacity for serving our markets and the global demand.