Union Budget 2022 Highlights

 A draft version of the Union Budget for the year 2022 was announced one day in February by Financial Minister Nirmala Sitharaman. Sitharaman is India's Finance Minister presented the Union Budget 2022 to Parliament. In honor of the celebration of "Azadi ka Amrit Mahotsav 2022," the budget is referred to as"the "Amrit Budget." According to Finance Minister, the growth of India's GDP for the period 2022-23 will be 9.2 percent which is greater than any other important economic growth rate. This shows that India has gotten over the gloom of pandemics and is poised to be a leader in the global economy in the coming years. In this article, we'll examine how the Union Budget 2022 Highlights.

Union Budget 2022 Highlights for MSME

• Credit guarantee trust that is primarily for small and micro-sized companies will be restructured to provide the required capital infusion. This will lead to the addition of 2 lakh crores for small and medium-sized enterprises, as well as benefiting businesses that have an MSME registration as well as Udyam registration.

• ECLGS will be operational through March 2023. The coverage guaranteed is expected to be increased by 50 crores, which brings the total to five lakh crores, to aid the MSME sector's needs for financing. Find out more about ECLGS as well as the previous update here: The government extends the ECLGS scheme to MSMEs Registration

Union Budget 2022 Highlights on Tax Measures

The comprehensive Budget Speech also contains important updates regarding Tax Measures. The Budget 2022 highlights on Tax Measures are listed below.

Union Budget 2022 Highlights on Income tax

• In her Budget for FY23 FM Sitharaman has no plans to make any modifications to the income slabs or tax rates. Standard deduction currently stands at the amount of Rs. 50,000.

• The minister of finance declared that the government is planning to boost the tax deduction for government contribution to NPS (National Pension System) from 10 percent to 14 percent.

• At the present, only employees of the central government are eligible to enjoy an advantage of 14 percent for their employer's contribution to the employee's NPS deposit. The tax benefit is limited to 10 percent for employees in the private sector.

• Taxpayers may prepare income tax returns up to 2 years after the close of the tax year that was assessed. But, excess taxes and interest on any additional income, which can range between 25 and 50%, have to be paid.

Union Budget 2022 Highlights on Corporate Taxes

• The tax rate for corporations remains the same. However, the lower 15 percent tax rate applicable to manufacturing companies that are new is now increased for a period of one year. Thus, entrepreneurs who are working in manufacturing are eligible to apply for company formation and enjoy the benefits.

• The tax rate for the minimum alternative tax (MAT) for co-operatives has been decreased to 15 percent. This will level the playing field for cooperative organizations and commercial companies like Private Limited Company Registration that are taxed at 15%.

Changes in Custom Duties

• A reduction of import duties to 5% on polished and cut diamonds as well as gemstones. A tax reduction of 0% on sawn diamonds, to help promote the industry.

Taxation of Digital Assets / Crypto-currency

• In order to keep up with the growing trend worldwide towards electronic financial instruments, the federal government has announced its plans to introduce the use of digital currencies and crypto-assets that are tax-deductible.

• The revenue generated from the transfer of any digital asset is taxed at a rate of 30 percent. However, losses from trading in virtual assets cannot be adjusted when ITR filing against other income.

• A 1 percent TDS will also be charged for the transfer to the digital assets.

• The Reserve Bank of India (RBI) will start issuing digital rupees from 2022-23. The bank will use blockchain technology as well as other advanced technology.

• To encourage financial integration All Post offices are linked to banking services that are central to banking.

Important Highlights of Union Budget 2022 for Infrastructure

• The joining between both the Ken as well as the Betwa rivers estimated to cost 44,605 crores, will be completed.

• A center for international arbitration will be set up in GIFT City -- a planned economic zone located in Gujarat to swiftly resolve disputes under international law.

• According to the Union Finance Minister Nirmala S. Sitharaman's budget speech, the capital expenditure for various infrastructure projects will increase by 35.4 percent between 2022 and 2022. In the next fiscal year, the government will spend 7.50 lakh crore on capital expenditure which is a substantial increase from the amount of 5.54 million.

• States will receive assistance to build urban capacity, public transit services, plan aid, and more.

• The Finance Minister of the Union has announced the launch of 400 brand new Vande Bharat trains and said that tenders for multi-modal parks on four locations will be announced the following fiscal year.

Union Budget 2022 Highlights for Defense, Power Sector, Housing, Education and Agriculture

• The majority of the funding for purchases of defense equipment will come from the domestic industry.

• PLI Scheme would receive an additional allocation of Rs 19,500 crore to produce high-efficiency solar panels, with a preference for fully integrated manufacturing facilities to manufacture PV solar modules to achieve the goal of creating the installation of 280 gigawatts of solar capacity by 2030.