Budget 2022 2023 Updates

The Finance Minister began her Budget speech by expressing empathy for those who suffered during the COVID 19 Pandemic. Nirmala Sitharaman estimated India's growth to be at 9.2% which is the highest amongst all the large economies. Here are the top announcements from the Budget 2022-23 proposal:

Agriculture

The domestic scheme was introduced to reduce the dependence on the imports of oilseeds
Fund with blended capital raised under co-investment model for financing the agricultural startups
Infrastructure for small farmers to be developed by the Railway in 2022- 2023

Finance

The emergency credit line guarantee scheme for the SMEs to be extended to March 2023
A Public Issue of the Life Insurance Corporation will be done shortly
SEZ Special Economic Zones will be replaced with new legislation
Amendments to the bankruptcy code to speed up the resolution process.
aims to lower the winding up of companies to 6 months from 2 years.
The long-term capital surcharge is to be capped at 15%.

Infrastructure

A 5G spectrum auction will be conducted in 2022.
The Scheme for Design Manufacturing for 5G to be a part of the Production Link Scheme
Award contract to lay optical fibre in rural parts, project completion by 2025.
480 billion is set aside for affordable housing.
Production linked incentives towards solar equipment manufacturing.

Transport

400 new energy-efficient trains to be manufactured over the next three years
Expansion of National Highway by 25,000 km.
Highway expansion t cost 200 billion rupees

Digital currency

To launch the digital rupee with blockchain technology starting 2022/2023
To launch a scheme for the taxation of virtual digital assets
Loses from the sale of virtual digital assets cannot be offset against other income
Income from virtual digital assets will be taxed at 30%.

Announcement or taxpayers

Taxpayers can file updated returns on the payment of taxes within two years from the end of the relevant assessment year.
New provisions will ensure voluntary tax filing and reduce litigation.
30% tax on the proceeds of virtual assets with no deduction other than the cost.
No set-off is permitted against the other income.
1% TDS levied on the payments made on digital transfer assets.
Deduction for employer contribution to NPS to be increased to 14 from 10% earlier for the State government employees on par with central government employees.

Key Highlights of the Budget

States to be allowed Fiscal deficit of up to 4 % of GSDP.
1 trillion financial assistance to the state to catalyse investments.
The proposed introduction of the digital rupee by RBI using blockchain technology
Measures to set up private capital in the infra sector.
PE/VC investing Rs. 5.5 trillion in startups with an expert committee to suggest measures for new investments.
An international arbitration centre is to be set up in GIFT city to provide fast dispute resolution
World-class universities are to be allowed in GIFT IFSC, which will be free from domestic rules and regulations.
Sovereign green bonds will be issued to mobilize resources as a part of the borrowing program of the government.
Financial support to the farmers to take up agro-forestry.

The Union Budget is the annual report of India and contains the revenue and expenditure for the end of the particular fiscal year, which runs from April 1 to 31

st March.

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Frequently Asked Questions

Common questions about India Union Budget 2022.

The key highlights of the Budget 2022-23 include the launch of the digital rupee by the RBI using blockchain technology, measures to attract private capital in the infrastructure sector, financial assistance of 1 trillion rupees to states to catalyze investments, and the issuance of sovereign green bonds to mobilize resources as part of the government's borrowing program.

The Budget 2022-23 aims to reduce the dependence on imports of oilseeds through a domestic scheme. It also proposes to set up a fund with blended capital raised under a co-investment model for financing agricultural startups. Additionally, the Railways will develop infrastructure for small farmers in 2022-2023.

The Budget 2022-23 includes a 5G spectrum auction, a scheme for the design and manufacturing of 5G as part of the Production Link Scheme, and the awarding of contracts to lay optical fiber in rural parts by 2025. It also allocates 480 billion rupees for affordable housing and provides production-linked incentives for solar equipment manufacturing.

The Budget 2022-23 proposes the manufacturing of 400 new energy-efficient trains over the next three years and the expansion of the National Highway by 25,000 km, with a cost of 200 billion rupees.

The Budget 2022-23 allows taxpayers to file updated returns on the payment of taxes within two years from the end of the relevant assessment year. It introduces new provisions to ensure voluntary tax filing and reduce litigation. Additionally, it imposes a 30% tax on the proceeds of virtual digital assets, with no deduction other than the cost, and a 1% TDS on payments made on digital transfer assets.

The Budget 2022-23 proposes to launch a scheme for the taxation of virtual digital assets. Income from virtual digital assets will be taxed at 30%, and losses from the sale of virtual digital assets cannot be offset against other income. Additionally, a 1% TDS will be levied on payments made on digital transfer assets.

The Budget 2022-23 proposes to replace the existing Special Economic Zones (SEZs) with new legislation.

The Budget 2022-23 announces a public issue of the Life Insurance Corporation (LIC) to be done shortly.

The Budget 2022-23 proposes amendments to the bankruptcy code to speed up the resolution process, aiming to lower the winding up of companies to 6 months from 2 years.

The Budget 2022-23 proposes to cap the long-term capital surcharge at 15%.