Budget 2022 Highlights

Find the highlights for Budget 2022 here

BUDGET 2022 BULLETIN

• Implementation of Ken Betwa Linking project at est. cost of Rs. 44,605 Cr. to be taken up with irrigation benefits to 9.0 lakh hectare farmland, drinking water to 62 lakh people, 103 MW hydropower. 27 MW solar power generation.

• Digital currency to boost digital economy. Digital Rupee to be issued by RBI starting 2022-23.

• Rs. 1 lakh crore to assist the states in catalysing the overall investment in economy. These 50 years interest free loans are over and above the normal borrowings to the states

• Revised estimate of capital expenditure is Rs. 6.3 lakh crore.

• Effective Capital Expenditure of the Central Govt is estimated at Rs 10.68 lakh crores in 2022-23, about 4.1% of GDP.

• To become sustainable & stronger we have set up a target to reach below 4.5% a fiscal deficit level.

• Our government is committed towards Atma Nirbhar Bharat in armed forces. 68% of capital procurement budget will be earmarked for domestic industry for 2022-23 up from 58% in 2021-22.

• Rs 19,500 crore marked for PLI for manufacturing of high efficiency module for polysilicon.

• Financial support will be provided to farmers wanting to take up Agro-Forestry.

• 5-7% biomass pellets will be co-fired in thermal power plants resulting in carbon dioxide savings of 38 mmt annually.

• Outlay for capital expenditure increased by 35.4% from previous year to 7.50 lakh crore in 2022-23.

• Sovereign Green Bonds to be issued in public sector projects to reduce carbon footprint initiatives in the economy.

• Data centres, energy storage systems to be included in harmonised list of infra sectors.

• Government back funds SIDBI fund of funds have provided scale capital creating a multiplier effect.

• Battery Swapping Policy will be brought out and inter operational service will be formulated.

• ‘One Nation, One Registration’ will be established for anywhere registration to facilitate ease of living & doing business.

• 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.

• 68% of the capital procurement budget for Defence to be earmarked for domestic industry.

• ‘Special Economic Zones Act to be replaced soon.
• Spectrum auctions this year to enable 5G roll out by 2023

• 400 new Vande Bharat trains to be manufactured in the next 3 years

• Drones to be used for crop assessment, digitization of land records, spraying of insecticides.

• Animation, visual effects, gaming and comics sector offers immense potential to employ youth.

• push for cross border insolvency resolution cases.

• ePassports will be rolled out in 2022-23 for convenience in overseas travel

• For urban capacity building, modernization of building by laws, town planning schemes and transit oriented development will be implemented.

• Centres of Excellence will be established with an outlay of 250 crore for urban sector development.

• Hospitality services by the small & medium sector are yet to bounce back, therefore, the government has decided to extend the ECGL service for this sector by March 2023 with an increased cover of Rs 50,000.

• Skilling programs will be reoriented. For skilling, upskilling & reskilling of our youth, Digital DESH e-portal will be launched.

• ‘One Class One TV Channel’ will be increased from 12 to 200 TV Channels to provide supplementary education in regional languages for class 1-12.

• A digital university will be developed to provide access to students for world-class quality education with ISTE Standards.

• For mental health counseling, a National Tele Mental Health Program will be launched.

• This Union Budget seeks to lay foundation & give blueprint of economy over ‘Amrit Kal’ of next 25 years – from India at 75 to India at 100. National Highway network will be expanded by 25,000 km in 2022-23.

• Production Linked Incentive (PLI) Scheme for achieving Aatma Nirbhar Bharat has received excellent response, with potential to create 60 lakh new jobs and additional production of 30 lakh crore during next years.

• PM Gati Shakti will encompass the 7 engines for multi-modal connectivity for the states. ‘One station, one product’ to help supply chain of local product. 100 Cargo Terminals under PM Gati Shakti will be developed in the next few years.

• ‘Parwatmala’ for conventional roads in hilly areas to be taken in PPP modes.

• For farmers to adopt to natural farming, comprehensive package for participation of State governments & MSMEs to be introduced.

• PLI Scheme In 14 Sectors Has Received Excellent Response

• India’s growth is estimated to be at 9.27 percent.
BUDGET 2022 BULLETIN

• India’s growth is estimated to be at 9.27 percent.

• PLI Scheme In 14 Sectors Has Received Excellent Response

• This Union Budget seeks to lay foundation & give blueprint of economy over ‘Amrit Kal’ of next 25 years – from India at 75 to India at 100. National Highway network will be expanded by 25,000 km in 2022-23.

• Production Linked Incentive (PLI) Scheme for achieving Aatma Nirbhar Bharat has received excellent response, with potential to create 60 lakh new jobs and additional production of 30 lakh crore during next years.

• PM Gati Shakti will encompass the 7 engines for multi-modal connectivity for the states. ‘One station, one product’ to help supply chain of local product. 100 Cargo Terminals under PM Gati Shakti will be developed in the next few years.

• ‘Parwatmala’ for conventional roads in hilly areas to be taken in PPP modes.

• For farmers to adopt to natural farming, comprehensive package for participation of State governments & MSMEs to be introduced.

• Hospitality services by the small & medium sector are yet to bounce back, therefore, the government has decided to extend the ECGL service for this sector by March 2023 with an increased cover of Rs 50,000.

• Skilling programs will be reoriented. For skilling, upskilling & reskilling of our youth, Digital DESH e-portal will be launched.

• ‘One Class One TV Channel’ will be increased from 12 to 200 TV Channels to provide supplementary education in regional languages for class 1-12.

• A digital university will be developed to provide access to students for world-class quality education with ISTE Standards.

• For mental health counseling, a National Tele Mental Health Program will be launched.

• 400 new Vande Bharat trains to be manufactured in the next 3 years

• Drones to be used for crop assessment, digitization of land records, spraying of insecticides.

• Animation, visual effects, gaming and comics sector offers immense potential to employ youth.

• push for cross border insolvency resolution cases.

• ePassports will be rolled out in 2022-23 for convenience in overseas travel

• For urban capacity building, modernization of building by laws, town planning schemes and transit oriented development will be implemented.

• Centres of Excellence will be established with an outlay of 250 crore for urban sector development.

• Battery Swapping Policy will be brought out and inter operational service will be formulated.

• ‘One Nation, One Registration’ will be established for anywhere registration to facilitate ease of living & doing business.

• 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.

• 68% of the capital procurement budget for Defence to be earmarked for domestic industry..

• ‘Special Economic Zones Act to be replaced soon.

• Spectrum auctions this year to enable 5G roll out by 2023

• Ken Betwa linking project to cost around Rs 44,605 crore. Budget updates – Direct Tax

– Provision for filing ‘Updated Income Tax returns’ within 2 years from end of relevant AY

– Reduced AMT rates for Co-operatives from 18.5% to 15%

– Reduced surcharge for Co-operatives with total income of 1cr to 10Cr

– Tax relief for persons with disability: Allow annuity payment to differently abled dependents when parents attaining age of 60 years

– Deduction for National Pension Scheme for State Government employees u.s 80CCC made at par with Central Govt.

– Start-ups established before 31.03.2023 (earlier – 31.03.2022; now extended by 1 year) will be provided tax breaks

– Last date for commencement of manufacturing for claiming lower tax regime under Section 115BAB to be 31.03.2024 (earlier 31.03.2023; now extended by 1 year)

– Virtual digital assets (Cryptocurrency):
Income from transfer of virtual digital assets to be taxed at 30%; No deduction for expenses other than cost of acquisition; No set off of losses
TDS @ 1% on consideration above specific threshold
Gift to be taxed u.s 56(2)(x)

– No repetitive appeals for common question of laws

– Off-shore banking units/ IFSC income to be provided exemptions
– Surcharge of certain AOPs to be capped at 15%

– Surcharge on Long Term Capital Gains on any assets to be capped at 15%

– Health and education cess not allowable as business expenditure u/s 37

– No set off of losses against undisclosed income detected during search

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