Budget Update 2022: What You Need To Know
The Indian Finance Minister, Nirmala Sitharaman, has released the budget for the fiscal year 2022–2023, which contains statements on digital assets as well as a 25-year roadmap plan.
If you are unfamiliar with the technical jargon and announcements made by the Finance Minister in her address, you may find a summary of the budget highlights here.
Financial Budget 2022 – 2023
Our Finance Minister, Srimati Nirmala Sitharaman, continued the long tradition of presenting a financial budget by presenting the budget for the fiscal year 2022–2023 on February 1, 2022.
- She made big announcements on India’s digital currency, tax on digital assets, and taxpayer announcements throughout her 90-minute speech.
- Budget is divided into four parts productivity, climate action, financing investments and PM Gati Shakti plan.
- The expected growth rate is at 9.27%of the country in the next year and 4.1% GDP.
- She stated that the RBI will launch a central bank digital currency this fiscal year, which will be a digital rupee based on blockchain and other technology.
- This follows the RBI’s nullification of a circular stating that cryptocurrency would be prohibited in 2020. The Indian economy will benefit from this decision, according to the Finance Minister.
- She announced a taxation policy for digital assets, which will be taxed at 30% with 1% TDS. The tax is imposed on both the transfer and the income generated by digital assets, and any losses incurred from the sale of virtual digital assets cannot be adjusted against other sources of income.
- In addition, the small and medium-sized enterprise emergency credit line guarantee scheme has been extended until March 2023. The guarantee limit has been increase by Rs 50,000 crores to total cover of Rs 5 lakh crores.
- She announced that taxpayers can make an updated return on tax payment within two years of the end of the relevant assessment year. This provision, she claims, will ensure voluntary tax submission and assist reduce litigation.
- Individual taxpayers’ income tax brackets have stayed unaltered. The tax deduction limit for state government employees to NPS has been increased from 10% to 14%.
- Startups incorporated up to 31st March 2023 and new manufacturing companies commencing its operation by 31st March 2024 can avail benefit of tax holidays.
- A surcharge on corporation tax has been reduced from 12 percent to 7%, with a 15 percent cap on the transfer of long–term capital gains tax.
- There will be reduction in the surcharge to 7% from 12% for income up to 10 crores of cooperative societies.
- New 400 Vande Bharat trains to be launched with better efficiency.
- 5G spectrum auction to be conducted in 2022 to bring 5G telecom services by private players in FY 2022-23.
- Planning to set up International Arbitration Centre.
- New legislation to come in place of Special Economic Zone Act to enable state partnership for development of enterprise and service hubs.