Union Budget 2022- Things you need to know
A budget is a document prepared by the government to present its estimated tax revenues and propose expenditure on defense, education, healthcare, infrastructure, and other sectors for the upcoming financial year.
Nirmala Sitharaman, finance minister of India on 1st February 2022 presented her fourth union budget 2022.
History and Interesting Facts About India’s Budget:
- India’s first budget was presented in the year 1947 by the finance minister of that time, R K Shanmukham Chetty.
- N. Sitharaman holds the record for the longest budget speech of 2 hours and 42 minutes given on 1st February 2020.
- In terms of the number of words, Manmohan Singh delivered the longest budget speech in 1991.
- Morarji Desai presented the highest number of budgets (10) during his tenure as a finance minister.
- N. Sitharaman is the second woman to present the budget of India after Indira Gandhi.
Budget 2022: Broad Prospects
This 2022 budget was most focused on Aatmanirbhar Bharat. As per our prime minister, this budget brings with it the energy and strength to our development trajectory. It brings more infra, investment, growth, and Jobs. It aims at transforming the agriculture sector and encouraging start-ups in the sector.
This budget 2022 along with providing strength to the economy focuses on providing new opportunities for the millennials. It aims at providing modern facilities and advanced technology in every aspect be it farming, railway, digital currency, banking, financial services, national health.
The budget 2022 also aims to cater to the development needs of people in remote areas, hill states, and states on the banks of the Ganga.
Highlights: Union Budget 2022
- India’s economic growth in the current year is estimated at 9.2%, the highest among all large economies.
- The National Highway network of India will be expanded by 25,000 km in 2022-23 Budget.
- Startups will be promoted to facilitate ‘Drone Shakti’ through varied applications and for Drone-as-a-service (DrAAS).
- A Digital University will be established to provide access to students across the country for world-class quality universal education with a personalized learning experience at their doorsteps.
- To better access quality mental health counseling and care services, a ‘National Tele Mental Health Programme’ will be launched.
- 48,000 crores are allocated for 80 lakh houses that will be completed for the identified eligible beneficiaries of PM Awas Yojana in 2022-23 budget.
- 60,000 crores are allocated for the current coverage of Har Ghar, Nal Se Jal scheme to cover 3.8 crore households in budget 2022-23.
- In 2022, 100 percent of 1.5 lakh post offices will come on the core banking system enabling net banking, mobile banking, ATMs, and online transfer of funds between post office accounts and bank accounts.
- The issuance of e-Passports using embedded chips and futuristic technology will be rolled out in 2022-23 to enhance convenience for the citizens in their overseas travel.
- In budget 2022, a battery swapping policy will be brought out for EV vehicles and interoperability standards will be formulated to improve efficiency in the EV ecosystem.
- 5G spectrum auctions will be conducted in 2022 to facilitate the rollout of 5G mobile services within 2022-23 by private telecom providers.
- The total budget expenditure in 2022-23 is estimated at ? 39.45 lakh crore, while the total receipts other than borrowings are estimated at ? 22.84 lakh crore.
Budget 2022: INCOME TAX
- Income from cryptocurrency and other digital asset transfers is taxable at 30%. No deduction and expense will be allowed from such income except the cost of purchase.
- TDS to be deducted on the transfer of cryptocurrency and other digital assets @ 1% over a certain limit.
- Gift of cryptocurrency and other digital assets will be taxed in the hands of recipient.
- Taxpayers can file an Updated Return on payment of additional tax within two years from the end of the relevant assessment year.
- MAT rate for cooperative societies reduced to 15% and surcharge on tax is capped at 7%.
- NPS deduction is increased to 14% of salary for state government employees too as previously available only for central government employees.
- Extension of the period of incorporation of the eligible start-up by one more year, that is, up to 31.03.2023 for claiming tax incentive.
- Surcharge on tax is capped at 15% for income from long-term capital gains and income of AOPs.
- No setoff of losses against undisclosed income was detected during the search and survey.
- TDS on payment of business promotion expense to an agent if aggregate value exceeds ?20,000 during the year.
Budget 2022: GST (Goods and Service Tax)
- Gross GST collection for the month of January 2022 is ? 1,40,986 crores, the highest since the inception of GST.
- ITC can be availed only if it is not restricted under Section 38.
- The time limit to avail ITC under 16(4) extended till 30th November from 30th September.
- Composition Tax Payer’s Registration can be canceled if they do not file their GSTR-4 return beyond 3 months from the due date.
- Credit Notes for a supply made in a financial year can be issued till 30th November of next financial year instead of 30th September as allowed earlier.
The budget was growth-oriented and focus on a long-term approach. However, the anticipations previously made by the millennials regarding income tax benefits were not considered this time.