BUDGET 2022 UPDATES LIVE

Here in this article, we are providing live updates for Budget 2022 for our readers. Sensex and Nifty are already booming in expectations of a good budget. Nifty is around 200 points up and BSE around 700 points up by 11:00 A.M. Let' see what is hidden in the Budget....

• Estimated Growth Rate of 9.2% in GDP
• Striving for promotion of Digital Companies and Fintechs
• Public Issue of LIC expected shortly
• PM Gati Shakti Master Plan for development of modern world class infrastracture
• Contracts for multi-model logistics park at 4 locations in F.Y. 2022-23
• One location One Product program will be popularised in the nation
• 400 new generation Vande Bharat Trains in the coming years
• Urban transport to be connected with Railways
• Innovative funding to be encouraged for Urban Metro System
• Chemical-free natural farming to be promoted nationwide
• 100 new cargo terminals to be developed in next 3 years
• Implementation of the scheme from reducing reliance on oilseed imports
• Draft DPRs for 5 river links have been finalized
• Emergency Credit Line Guarantee Scheme will be extended up to March 31st 2023 and its guarantee cover will be expanded by Rs. 50,000 crores leading to total cover of Rs. 5 Lakh Crores.
• CGTMSE scheme to be revamped and Rs. 2 Lakh crore funds for micro and small enterprises.
• Expansion of highways by 25,000 kilometers in next financial year
• Promotion of start-ups for Drone Manufacturing to be made
• National Tele Mental Health Programme to be launched
• Set up of Digital Univerisity to support schools in digital or online education looking into Covid-19 pandemic
• Allocation of Rs. 60,000 crores for 3.8 crore household for tapwater
• 75 digital banking units proposed to be set up in 75 districts by scheduled commercial banks
• Ease of Business 2.0 will be launched- Idea of Trust based Governance, digitilisation of manual processes, single point access for citizen services, crowd sourcing of suggestions- Citizen involvement will be promoted
• Issuance of E-passports with embedded chips to be rolled out in FY 2022-23
• Battery Swapping Policy will be brought out for promotion of EVs looking into paucity of spaces for EV charging stations
•  Necessary changes in IBC to facilitate cross border insolvency resolutions
• Scope of Single Window Clearing System for all Green clearances will be expanded
• Required auction for spectrum for 5G to be conducted in FY 2022-23
• Special Economic Zones will be replaced with new legislation
• 65% of defence capex to be kept for domestic enterprises
• Additional allocation of Rs. 19500 crore under PLI scheme for Solar PV module manufacturing
• Sovereign Green Bonds to be issued for mobilising green economy in FY 2022-23
• International Arbitration Centre to be set up in GIFT City
• Introduction of Central Bank Digital Currency- proposed to issue digital rupee using blockchain technology in FY 2022-23

Part B of Speech of Finance Minister:

Direct Tax Amendments:

• New Updated Return System: Correction opportunity to file an updated return on payment of an additional amount within 2 years from the end of relevant assessment year
• Reduction in Alternative Minimum Tax for co-operative societies from 18.5% to 15% to provide level playing ground
• Surcharge on co-operative societies to be brought down to 12% from 7% in case of assessees having total income between Rs. 1 crore to Rs. 10 crores
• To bring parity, state government employees also allowed a deduction to the extent of 14% of salary in the case of contribution to NPS by employers
• To incentivize start-ups, the last date for eligible start-ups for getting tax deduction for 3 consecutive years extended upto 31-03-2023.
• Incentives for new manufacturing companies: Last date of commencing manufacturing for availing concessional tax regime of 15% is extended by one more year up to 31st March 2024
• Tax on virtual digital asset (crypto currency) introduced by the Budget 2022 @ 30% on any income by way of transfer of digital currency. No deduction for any expenditure will be allowed except the cost of acquisition. Loss arising on sale of digital currency shall not be allowed to be set off against any other income.
• Gift of digital currency shall be taxable in the hands of the recipient.
• Also TDS @ 1% prescribed in case of digital currency.
• Litigation Management to avoid unnecessary appeals by the department
• Cap on surcharge on any Long Term Capital Gain on transfer of any asset at 15%
• Looking into judgements of various courts, amendment brought in to ensure that Health & Education Cess will not be allowed to be deducted as business expenditure
• No set off of any loss against undisclosed income identified during the course of search and survey operations

Customs

• Concessional Customs Duty on steel scrap extended by one more year
• Unblended fuel to attract additional customs duty of Rs. 2 per litre
• Duty on unpolished diamonds to be reduced to 5%
• Customs duty on umbrellas increased to 20%

Read related articles: 

Key Highlights of GST proposals Finance Bill 2022
Tax on Cryptocurrency or Virtual Digital Assets
Disallowance of incentives and gifts to medical practitioners
Updated Income Tax Return under section 139(8A)
Amendments in TDS provisions- Finance Bill 2022
Cess not allowed as business expenditure
Clarification in respect of disallowance u/s 14A
No appeal before High Court or Supreme Court until identical question of law pending
Cash Credit under section 68- Amendment by Finance Bill 2022