Finance minister Nirmala Sitharaman presented the Union Budget 2022, the fourth budget of Modi 2.0, today.
There were a host of measures aimed at boosting growth amid high & rising inflation and continuing Covid uncertainties.
There, however, were remarkably few real changes to the personal income tax structure in a year that had seen demands from various quarters for some sort of relief or another in times of a pandemic.
Among a range of significant announcements, the decision to tax receivers of digital asset transfers at a high 30% caught some serious attention.
Here’s a sector-wise detailed reading of the various measures the Finance Minister announced today.
Economy
- Capex target expanded by 35.4 percent — from Rs 5.54 lakh crore to Rs 7.50 lakh crore. FY23 effective Capex seen at Rs 10.7 lakh crore
- India’s growth is highest among all major economies; we are now in a strong position to withstand challenges
- The goal is complementing macro-growth with micro-all-inclusive welfare, digital
- economy and fintech, tech-enabled development, energy transition, and climate action
- ECLGS cover expanded by Rs 50,000 to Rs 5 lakh crore
- The top focus of the budget this year are: PM Gati Shakti, Inclusive Development, Productivity Enhancement, Sunrise Opportunities, Energy Transition, Climate Action, Financing of investments
Productivity-linked incentive schemes in 14 sectors have received an excellent response; received investment intentions worth Rs 30 lakh crore
Expenditure and deficit & other key numbers
- Proposed fiscal deficit of 4.5% of GDP by 2025/26
- Projected fiscal deficit of 6.4% of GDP in 2022/23
- Revised fiscal deficit for 2021/22 at 6.9% of GDP
- 50-year interest free loans over and above normal borrowing allowed for states
- Scheme for financial assistance to states for capital investment outlay to be Rs 1 lakh crore for 2022/23
Taxes
- Govt vows a stable and predictable tax regime
- Govt to provide a one-time window to correct omissions in ITRs filed, updated returns to be filed within 2 years
- Any cess or surcharge on income is not allowed as business expenditure
- 1 percent TDS on transfer of virtual assets above a threshold, gifts to be taxed
- Surcharge on long-term capital gains capped at 15 percent
- The government will tax income from digital as asset transfers at 30%
