Budget 2022-2023 Updates
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:
- 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
- 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%.
- 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.
- 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
- 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 31st March.