Finance minister Nirmala Sitharaman on Tuesday unveiled budget for fiscal year 2022-23 with an aim to boost growth amid continued disruption from Covid-19 and rising inflation. Biggest focus was on infrastructure spending. Taxpayers can now file an updated return within 2 years from relevant assessment year. However, there has been no change in personal income tax slabs. Income from transfer of any virtual digital asset shall be taxed at the rate of 30%. Besides, corporate surcharge has been reduced from 12% to 7%.
Praising the 2022-23 budget, prominent chartered accountant from North East Umang Jain said that the budget rightly targets the areas to accelerate economic recovery without increasing any undue tax burden.
“It is a great budget.The power, as said by the finance minister, is in the hands of the YOUTH to achieve India to a great high,” Jain said.
He added, “This is an extremely balanced Budget given that the economy is just emerging out from a contraction and the risk of pandemic is still around. The government has relied on increasing government spending to boost the economy and therefore the fiscal deficit for FY22 has been pegged at 6.8% of GDP. There are also quite a few measures that will have a long-term positive impact on the Indian economy including formation of asset reconstruction company, measures to combat air pollution, divestment of public sector banks, increase in FDI limit to 74% in Insurance, promotion of digital payments and increasing tax transparency through digitization.”
Here are some of the features of the Budget:
1. IPO of LIC soon2. Tax on Cryptos and digital asset at 30%3. RBI to launch digital currency backed by blockchain4. HUGE FOCUS ON CAPEX a. A big decision to boost infra growth in India5. Direct Taxes a. ITR to be revised for 2years b. Various reliefs to Cooperatives i. Reduction in surcharge ii. Reduction in AMT c. Parity between State Govt and Central Govt employees d. Time limit extended for startup e. And various more6. Focus on mental Health and digital health7. Development in housing for all8. TV channel for each subject for students9. Post office to be under CBS and provide net banking10. E-passport to launch11. 5G auction to be conducted12. Various changes in IBC13. To go atmanirbhar in Defense production14. Interest free loan to state government15. Focus on PM Gatishakti-infra development a. Expand NH by 25000km etc16. Focus on One Station-One Product17. River linking project18. Various scheme for farmer19. Improved land record management20. Various other changes in GST and costume duties.
These are the key highlights of the budget. The major focus here is on CAPEX spending and infrastructure buildup-which is what exactly needed for India.
Total expenditure planned is Rs. 37.70 lakh crore against the total receipts other than borrowings are estimated at Rs. 22.84 lakh crore, getting a fiscal deficit of 6.4% of GDP.
