Finance Minister tables Union Budget 2022: Key Highlights

 

Union Finance Minister Nirmala Sitharaman has reached Parliament after meeting President Ram Nath Kovind. She is set to set to present her fourth Budget today — February 1 — for the financial year 2022-23 amid an ongoing third wave of omicron-led coronavirus and volatile stock markets as inflation worries weigh on the sentiment. The Union Budget or the Annual Financial Statement as specified in Article 112 of the Indian Constitution will be presented in Parliament at 11 am Following are the Highlights of the Budget

1. Cryptocurrency to be taxed at 30 % special rate, no deduction allowed.
   Online digital assets to be taxed @ 30%. No deductions or set-off of losses. Flat tax at 30% will be lived without any deduction. No deduction except cost of acquisition. TDS at 1% to be deducted on transaction value. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except cost of acquisition
2. Corporate surcharge to be reduced from 12% to 7%
3. Health and Education Cess and Surcharge shall not be allowed as business expenditure
4. Propose to cap surcharge for AOPs at 15%. Also cap surcharge on LTCG arising from transfer of assets at 15% to give a boost to the startup community
5. No Change in Slab Rates for Individuals and others
6. If undeclared income is detected during the search, no deduction will be allowed on such additional income
7. Propose a provision to file an updated return with payment of additional tax to correct any errors in assessment. Assesses can declare income that may have been missed out on previously. New provision introduced to file updated ITR within 2 years in case of any omission or mistake
8. To reduce surcharge on co-operative societies to 7% from 12% for income between Rs 1 cr to Rs 10 cr
9. FM said despite of Covid Pandemic GST collection has touched all-time high from its inception. FM gave credit to recovering economy and administrative measures taken by revenue department. Gross GST collection in Jan 2022- 1,46,986 cr. Highest since inception of GST
10. Persons with disability – Parents and Guardians can avail annuity even in their life time
11. Gross GST collects for Rs 1,46,986 Cr which is highest since inception of GST; possible due to rapid economic recovery post Covid-19
12. Tax Deduction limit for state govt employees to NPS raised to 14% from 10%
13. Incentives for startups: period of incorporation extended by a year to 2023 to avail of tax benefits. For corporates, Extension also granted for new companies to setup manufacturing facilities to 2024 from earlier 2023
14. Section 115BAB the date for setting up business increased by one year to 2024. Incentive for newly incorporated manufacturing industry a concessional tax rate of 15% was introduced
15. Issuance of E-passports will be ruled out in 2022-23 to enhance convenience for citizens
16. India Economic Growth in FY22 to be at 9.2%. Economic growth estimated at 9.2%
17. 25,000 compliances have been done away with and 1,486 union laws have been repealed
18. Digital rupee to be issued using blockchain and other technologies; to be issued by RBI starting 2022-23. This will give a big boost to the economy
19. Budget seeks to lay the blueprint to steer the economy over the next 25 years from India at 75 to India at 100
20. Children mostly in Govt schools have lost 2 years of formal education. High quality e content will be developed in regional languages. A digital university will be setup. Will be built on a network hub-spoke model
21. Teachers will be equipped with digital tools. Digital University will be set up
22. Public issue of LIC is expected shortly. Others are also expected shortly. This budget will continue to provide impetus for growth- futuristic & inclusive
23. Speed in coverage of vaccination has helped in economic recovery
24. Modern Infra for India at 100 with Multi modal approach
25. Budget to focus on 4 pillars – productivity, climate action, financing investments & PM Gati Shakti plan
26. PM GatiShakti Energy transition, Climate Action to fuel Sustainable development
27. PLI in 14 Sectors to create 50 lakh new jobs and additional production of Rs 30 lakh Cr
28. We are in the midst of the Omicron wave, the speed of our vaccination campaign has helped greatly. I am confident that ‘Sabka Prayaas’, we’ll continue with strong growth
29. This Budget (2022-23) will benefit, youth, women, farmers, SC, ST… ; shall be guided by PM Gati Shakti master plan
30. Contracts for 4 multimodal logistics parks in PPP mode will be awarded in 2022-23
31. 400 new generation Vande Bharat trains with better efficiency to be brought in during the next 3 years
32. 100 PM Gati Shakti Cargo terminals to be developed during next 3 years and implementation of innovative ways for building metro systems
33. The National Highway network will be expanded by 25,000 kms in 2022-23
34. Support will be provided for branding and marketing and harvest of millets. 2022-23 has been announced as International Year of Millets
35. MSMEs: ECLGS has provided much needed credit. Scheme to extended to March 2023, cover to be expanded by 50,000 cr to 5 lakh cr. With the additional amount earmarked for hospitality sector
36. Rs 20000Cr to boost Transport Infra
37. Rs 2.73 lakh Cr as Public Procurement/MSP for Wheat &Paddy
38. Focus on Natural,Chemical Free& Zero Budget Farming
39. Drones for Agriculture
40. ECLGS till March 2023,with total cover of Rs 5 lakh Cr
41. Unified Logistics Interface Program for JIT Inventory Management
42. Railways to fuel Logistics for Small Farmers
43. One Station One Product for Local Businesses
44. 2000km under Kawach 400
45. Vande Bharat Trains
46. 100 Cargo Terminals
47. Productivity-linked incentive schemes in 14 sectors have received excellent response; received investment intentions worth Rs 30 lakh crore
48. Chemical-free natural farming will be promoted throughout the country with a focus on farmers’ land in 5 km wide corridors along the river Ganga, in the first stage
49. Procurement of wheat in Rabi season 2021-22 and the estimated procurement of paddy in Kharif season 2021-22 will give cover 1208 lakh metric tonnes of wheat & paddy from 163 lakh farmers& Rs 2.37 lakh crores will be the direct payment of MSP value to their accounts
50. Emergency Credit Line Guarantee Scheme (ECLGS) extended till March 2023. Guarantee cover for ECLGS will be expanded by Rs 50,000 cr to a total of Rs 5 lk cr.
51. MSMEs such as Udyam, e-shram, NCS & Aseem portals will be interlinked, their scope will be widened… They will now perform as portals with live organic databases providing G-C, B-C & B-B services such as credit facilitation, enhancing entrepreneurial opportunities
52. PM Gati Shakti will pull forward the economy and will lead to more jobs and opportunities for the youth
53. National tele mental health program to be launched, steered by NIMHANS, National Tele Mental Health Centres of Excellence to be launched
54. Will promote startups for drone manufacturing
55. Data exchange among all-mode operators to be brought on Unified Logistics Interface Platform, designed for API will enable, Efficient movement of goods, Reduce logistics costs and time, Assist Just In Time inventory management and Eliminate tedious documentation
56. PM E-Vidya to be Expanded to 200 TV channels in Regional Languages with focus on High quality e-content
57. 2 Lakh Anganwadis to be Upgraded
58. 8.7Cr Households have access to Har Ghar Jal,with
59. 5.5Cr getting Drinking Tap Water
60. Rs 50000Cr to cover 3.8Cr Households in 2022-23,under Har Ghar Jal
61. 80 Lakh Beneficiaries identified under PM Awas Yojana, for 40000Cr
62. Implementation of Ken-Betwa rivers linking with estimated cost of Rs 44,605 cr to be taken up
63. Propose to setup 75 digital banking units in 75 districts by scheduled commercial banks
64. PM Gati Shakti is driven by 7 engines: roads, railways, airports, ports, mass transport, waterways & logistics infra.
65. Kisan Drones for crop assessment, land records, spraying of insecticides expected to drive a wave of technology in agri sector
66. Rs 6,000 crore programme to rate MSMEs to be rolled out over 5 years
67. 400 new generation Vande Bharat trains with better efficiency to be brought in during the next 3 years; 100 PM Gati Shakti Cargo terminals to be developed during next 3 years and implementation of innovative ways for building metro systems
68. 1.5 lakh post offices to be connected to core banking
69. A network of 23 tele mental health centres of excellence with Nimhans being the nodal centre and IIIT Bangalore providing technology support
70. Push for EVs by Battery swapping policy will be brought out and inter-operability standards will be formulated
71. To promote a shift to the use of public transport in urban areas…special mobility zones with zero fossil fuel policy to be introduced…Considering space constraints in urban areas, a ‘Battery Swapping Policy’ will be brought in
72. Accelerated Corporate Exit for voluntary winding of company from current 2yr to less than 6months
73. Digital university to be set up to provide education; to be built on hub and spoke model
74. High level committee of urban planners, economists & others will be setup to facilitate reforms. Necessary amendments in IBC to be made for more efficient resolution; to also enable cross border insolvency resolution
75. Fund to be facilitated through NABARD to finance startups for agriculture and rural enterprise, relevant for farm produce value chain. Startups will support FPOs and provide tech to farmers
76. 2,000 km of rail network to be brought under the indigenous world-class technology KAWACH, for safety and capacity augmentation
77. Spectrum auctions will be conducted in 2022 to roll out 5G services. Scheme for design led manufacturing in 5G to be launched as part of PLI scheme
78. Special economic zone policy to be replaced with a new legislation
79. Battery Swapping Policy will be brought out & inter operational service will be formulated. Private sector will be encouraged to create sustainable and innovative business models for battery and energy as a service, improving the efficiency in the EV ecosystem
80. ‘One Nation, One Registration’ will be established for anywhere registration to facilitate ease of living & doing business:
81. Implementation of Ken Betwa Linking project at est. cost of Rs. 44,605 Cr. to be taken irrigation benefits to 9.0 lakh hectare farm land
82. 68% of the capital procurement budget for Defence to be earmarked for domestic industry to promote Aatmanirbharta and reduce dependence on imports of defence equipment. This is up from the 58% last fiscal
83. To reduce the delay in payment, an online bill system to be launched which will be used by all Central ministries
84. Animation, Visual Effects, Gaming and Comics (AVGC) sector offers immense potential to employ youth. An AVGC promotion task force with all stakeholders will be set up to recommend ways to realise this and build domestic capacity for serving our markets and the global demand
85. Fund to be facilitated through NABARD to finance startups for agriculture and rural enterprise, relevant for farm produce value chain. Startups will support FPOs and provide tech to farmers
86. SEZ Acts will be replaced with a New Act. SEZ (Special Economic Zones) Act will be replaced with new legislation…for the development of enterprise and hubs… It will cover the existing industrial enclaves and enhance the competitiveness of exports
87. To achieve 280 GW of solar power by 2030, Additional allocation of Rs 19,500 towards solar PLI for mfg of high efficiency modules
88. Amendments for the Bankruptcy Code – IBC amendments to enhance efficiency of resolution process – Facilitate cross-border insolvency resolution – To speed up voluntary winding up of companies
89. A high-level panel to be set up for urban planning
90. Modern building by-laws will be introduced
91. Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) to be revamped with required fund infusion Will facilitate additional credit of Rs. 2 lakh crore for Micro and Small Enterprises and expand job opportunities
92. Effective Capital Expenditure of the Central Govt is estimated at Rs 10.68 lakh crores in 2022-23, about 4.1% of GDP: Public expenditure needed to pump prime demand and crowd in private investment
93. A new scheme PM development initiative for North East will be initiated to fund social development projects
94. 5 existing academic institutions for urban planning to be designated as Centre for Excellence with an endowment fund of Rs 250 cr
95. Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) to be revamped with required fund infusion Will facilitate additional credit of Rs. 2 lakh crore for Micro and Small Enterprises and expand job opportunities
96. Sovereign green bonds will be used to finance green projects
97. To set up an expert committee to examine a holistic regulatory framework for VCs, PEs and look at areas of friction
98. Capital Expenditure to increase 35.4% from ₹5.54 lakh crore to 7.50 lakh crore
99. Total expenditure is estimated at Rs39.45 lakh cr Receipts are estimated at Rs22.84 lakh cr. FY’23 fiscal deficit target at 6.4% of GDP vs 6.9% (RE)
100. Rs 1 lakh crore financial assistance to states to be provided in 2022-23 to catalyze investments