HIGHLIGHTS OF BUDGET 2022

1. No changes in Income Tax Basic Slab Rate,

2. Digital Banking by Post Offices: 100% of post offices to come on the core banking system,

3. Digital Payments: Scheduled Commercial Banks to set up 75 Digital Banking Units in 75 districts,

4. Rs. 19,500 crores allocated to Production Linked Investment for manufacturing of Solar PV modules,

5. New education channel - One Class 1 TV channel to be launched to give supplementary education to children to make up for the loss of formal education due to COVID-19,

6. Digital University will be established for word-class universal education in India,

7. Har Ghar, Nal Se Jal: 3.8 crore households to be covered in 2022-23, FM allocates 60,000 crores for providing tap water access,

8. PM Awas Yojana: 80 lakh houses to be completed in 2022-23, Rs 48,000 crore is allotted for PM Awas Yojana,

9. Vibrant Villages Programme: Targeting development of villages on the Northern Border left out from the development gains,

10. Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with required infusion of funds. This will facilitate additional credit of ` 2 lakh crore for Micro and Small Enterprises and expand employment opportunities,

11. ECLGS Guarantee cover to be enhanced to Rs. 5 lakh Crore to help MSMEs mitigate pandemic Impact,

12. Existing Emergency Credit Line Guarantee Scheme (ECLGS) would be extended up to March 2023

13. Raising and Accelerating MSME Performance (RAMP) programme with outlay of ` 6,000 crore over 5 years will be rolled out. This will help the MSME sector become more resilient, competitive and efficient,

14. Defence R&D will be opened up for industry and Startups 68% of R&D budget in Defence earmarked for Make In India,

15. Private industry is encouraged to design and develop military platforms and equipment in collaboration with DRDO & other organizations through SPV Model,

16. Spectrum auctions will be conducted in 2022 to roll out 5G services,

17. Optical fibre - Bharat Net optical fibre project to be completed in 2025,

18. For affordable broadband services in rural and remote areas, 5% of the annual collection under the universal service obligation fund will be allocated,

19. Digital Rupee using blockchain is to be issued by RBI starting 2022-2023,

20. Income from the transfer of virtual digital asset shall be taxed at 30% with no deductions of expenses except cost of acquisition,

21. Gift of Virtual Digital Assets to be taxed at receiver's end,

22. TDS on payment made in relation to transfers of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold,

23. Digital health registry to be rolled out,

24. National Telemental Health Programme to be launched, including a network of 23 telemental health centres of excellence,

25. Sec. 115 BAB Incentives for newly incorporated manufacturing entities under concessional tax regime extended to 1 More Year i.e. 31.03.2024,

26. Incentive for Startups benefits allowed to start up incorporated before (Earlier 31-3-2022 extended to 31-3-2023),

27. Startups will be promoted to facilitate ‘Drone Shakti’ through varied applications and for Drone-As-A-Service (DrAAS),

28. Use of Kisan drones will be promoted for crop assessment, digitization of land records, spraying insecticides and nutrients,

29. Rs. 2.37 lakh crores of MSP value directly transferred to Farmers,

30. Start-ups for agriculture and rural enterprise relevant to farm produce will be financed through a co-investment model facilitated by NABARD,

31. For better farming, Central government will provide a comprehensive package with state government coordination,

32. AMT is proposed to be reduced from 18.5% to 15% for co-operative society,

33. Surcharge rate reduced from 12% to 7% on co-operative society having total income less than Rs. 10 crores,

34. Maximum surcharge on long-term capital gain is capped at 15%,

35. Surcharge or cess on income and profit is not allowable as business expenditure,

36. No benefit of set-off of loss allowable on income discovered during search and seizure,

37. Employer contribution to NPS in case of state government employees increased from 10% to 14%,

38. No set off of any loss shall be allowed against undisclosed income detected during search and survey operations,

39. TDS on business promotion expenses if the aggregate value of such benefits exceeds Rs. 20,000/- during the financial year,

40. Tax Deduction is allowed on sum received Lumpsum or annuity for the differently abled person during the lifetime of the parents or guardian i.e. on parents/ guardians attaining the age of sixty years,

41. New provision introduced for filing of an updated return within 2 years from the end of the relevant assessment year on payment of additional tax,

42. Faceless proceedings under Customs will be fully established in coming days,

43. Customs Duty on Gems and Diamonds reduced to 5%,

44. Duty concessions provided to high growth electronic items,

45. Concessions provided on raw material for boosting manufacturing of Electronics Goods,

46. End-to-End online e-bill system will be launched for all central ministries for procurements,

47. Amendments in the IBC to be carried out to enhance the resolution process and facilitate cross border insolvency resolution,

48. Social Welfare - Transliteration of land records in 8 languages will be rolled out,

49. Due to space scarcity in urban areas for setting up charging stations, Battery Swapping policy will be launched,

50. Issuance of E-Passports will be rolled out in 2022-23,

51. Northeast infra - PM development initiative for the northeast to fund infra and social development projects,

51. For women and child development, 2 lakh Anganwadis to be upgraded with better facilities,

52. Skilling avenues to be promoted for employment and employability with private players,

53. Draft Detailed Project Report (DPR) for 5 River Linking have been finalized,

54. 100 new cargo terminals to be built over the next three years,

55. 400 new Vande Bharat trains to be introduced in next 3 years,

56. Design of metro system, including civil structure, will be reoriented and standardized,

57. Railways will develop new products and efficient logistics for small farmers and small enterprises under the One Station, One Product concept,

58. Contracts for implementation of multimodal logistics parks through PPP mode will be awarded in FY 2022-23,

59. FM suggests 7 Engines for unison growth of India - Roads, Railways, Airports, Ports, Mass Transports, Waterways and Logistics infrastructure,

60. Production linked incentive (PLI) scheme enabled 60 lakhs new jobs in the country,

61. India to launch sovereign green bonds. Funds will be used for projects that will help reduce the carbon intensity of the economy,

62. Sovereign green bonds will be part of the government’s borrowing programme in FY23,

a. SEZ Act to go, new law to allow states to partner to enhance export performance,

b. Rs 1 lakh crore financial assistance to be provided to states in 2022-23 to catalyse investments,

c. SEZ reforms in customs to be implemented by 30th Sept, 2022,

d. Proposals made for exempting few goods under Customs for promoting manufacturing of Capital goods,

e. Animation, Visual Effects, Gaming and Comic (AVGC) offers immense potential to employ Youth. AVGC taskforce to be set up.

Article Compiled by Legal Mantra.net Team

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