{"id":4774,"date":"2022-02-01T23:40:23","date_gmt":"2022-02-01T18:10:23","guid":{"rendered":"https:\/\/yourcareerheights.com\/?p=4774"},"modified":"2022-02-01T23:40:25","modified_gmt":"2022-02-01T18:10:25","slug":"union-budget-2022-23-key-highlights-and-impact-on-various-sectors","status":"publish","type":"post","link":"https:\/\/yourcareerheights.com\/?p=4774","title":{"rendered":"Union Budget 2022-23 &#8211; Key Highlights and Impact on various sectors"},"content":{"rendered":"<div id=\"pl-4774\"  class=\"panel-layout\" ><div id=\"pg-4774-0\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-4774-0-0\"  class=\"panel-grid-cell\" ><div id=\"panel-4774-0-0-0\" class=\"so-panel widget widget_sow-editor panel-first-child panel-last-child\" data-index=\"0\" ><div class=\"panel-widget-style panel-widget-style-for-4774-0-0-0\" ><div\n\t\t\t\n\t\t\tclass=\"so-widget-sow-editor so-widget-sow-editor-base\"\n\t\t\t\n\t\t>\n<div class=\"siteorigin-widget-tinymce textwidget\">\n\t<h3><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium\" src=\"https:\/\/i0.wp.com\/static.pib.gov.in\/WriteReadData\/Infographics\/2022\/Feb\/I202202011676.JPG?resize=700%2C760&#038;ssl=1\" width=\"700\" height=\"760\" \/>FM Nirmala Sitharaman presented Union Budget 2022 in Parliament. While keeping the Income Tax Slabs unchanged, FM announced a major change in taxation as far as virtual digital assets are concerned. Union Finance Minister Nirmala Sitharaman proposed a 30 per cent tax on income from transactions in such assets. Furthermore, FM Also proposed Gati Shakti Programme which will boost infrastructure and create more jobs. On education sector, FM has announced launch of a new Digital University as well as expansion of PM eVIDYA with addition of new TV channels for supplementary education.<\/h3>\n<div id=\"ls-canvas\" class=\"ls-canvas\">\n<div id=\"ls-row-2\" class=\"ls-row body-fx\">\n<div id=\"ls-gen77728877-ls-fxr\" class=\"ls-fxr\">\n<div id=\"ls-row-2-area-2\" class=\"ls-area body-LHS\">\n<div id=\"ls-gen77728879-ls-area-body\" class=\"ls-area-body\">\n<div id=\"w1452338985747\" class=\"ls-cmp-wrap\">\n<div id=\"1452338985747\" class=\"iw_component\">\n<div id=\"maindiv\">\n<div id=\"itemdiv\" class=\"article-det\">\n<h4><strong>Budget of Amrit Kal<\/strong><\/h4>\n<p>FM Nirmala Sitharaman in term Budget Speech, termed Union Budget 2022 as the foundation for Amirt Kal of Next 25 Years. She said \u201cThe Union Budget seeks to lay foundation and give blueprint of the economy over \u2018Amrit Kal\u2019 of next 25 years \u2013 from India@75 to India@100.\u201d<\/p>\n<h4><strong>Budget 2022 - 4 Priorities of Govt<\/strong><\/h4>\n<p>At the onset of her Budget Presentation, FM outlined the 4 Key Priorities that the Government was trying to address through Budget 2022. These are:<\/p>\n<ul>\n<li><strong>PM Gati Shakti<\/strong><\/li>\n<li><strong>Inclusive Development<\/strong><\/li>\n<li><strong>Optimize Productivity<\/strong><\/li>\n<li><strong>Financial Investment<\/strong><\/li>\n<\/ul>\n<div class=\"text-center\">\n<h3 style=\"text-align: center;\"><strong>HIGHLIGHTS OF THE UNION BUDGET 2022-23<\/strong><br \/>\n<span id=\"ltrSubtitle\"><\/span><\/h3>\n<\/div>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-medium alignleft\" src=\"https:\/\/i0.wp.com\/static.pib.gov.in\/WriteReadData\/userfiles\/image\/image0013GGO.jpg?resize=613%2C595&#038;ssl=1\" width=\"613\" height=\"595\" \/>The Union Budget seeks to complement macro-economic level growth with a focus on micro-economic level all inclusive welfare.<\/p>\n<p><strong>The key highlights of the budget are as follows:<\/strong><\/p>\n<p><strong><u>PART A<\/u><\/strong><\/p>\n<ul>\n<li>India\u2019s economic growth estimated at\u00a0<strong>9.2%<\/strong>\u00a0to be the highest among all large economies.<\/li>\n<li><strong>60 lakh new jobs<\/strong>\u00a0to be created under the productivity linked incentive scheme in 14 sectors.<\/li>\n<li>PLI Schemes have the potential to create an\u00a0<strong>additional production of Rs 30 lakh crore.<\/strong><\/li>\n<li>Entering Amrit Kaal, the 25 year long lead up to India @100, the budget provides impetus for growth along\u00a0<strong>four priorities<\/strong>:<\/li>\n<li><strong>PM GatiShakti<\/strong><\/li>\n<li><strong>Inclusive Development<\/strong><\/li>\n<li><strong>Productivity Enhancement &amp; Investment, Sunrise opportunities, Energy Transition, and Climate Action.<\/strong><\/li>\n<li><strong>Financing of investments<\/strong><\/li>\n<\/ul>\n<p><strong><u>PM GatiShakti<\/u><\/strong><\/p>\n<ul>\n<li>The seven engines that drive PM GatiShakti are\u00a0<strong>Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure.<\/strong><\/li>\n<\/ul>\n<p><strong>PM GatiShkati National Master Plan<\/strong><\/p>\n<ul>\n<li>The scope of PM GatiShakti National Master Plan will encompass the seven engines for economic transformation, seamless multimodal connectivity and logistics efficiency.<\/li>\n<li><strong>The projects pertaining to these 7 engines in the National Infrastructure Pipeline will be aligned with PM GatiShakti framework.<\/strong><\/li>\n<\/ul>\n<p><strong>Road Transport<\/strong><\/p>\n<ul>\n<li>National Highways Network to be expanded by\u00a0<strong>25000 Km<\/strong>\u00a0in 2022-23.<\/li>\n<li><strong>Rs 20000 Crore<\/strong>\u00a0to be mobilized for National Highways Network expansion.<\/li>\n<\/ul>\n<p><strong>Multimodal Logistics Parks<\/strong><\/p>\n<ul>\n<li>Contracts to be awarded through PPP mode in 2022-23 for implementation of Multimodal Logistics Parks at four locations.<\/li>\n<\/ul>\n<p><strong>Railways<\/strong><\/p>\n<ul>\n<li><strong>One Station One Product<\/strong>\u00a0concept to help local businesses &amp; supply chains.<\/li>\n<li><strong>2000 Km of railway network to be brought under Kavach<\/strong>, the indigenous world class technology and capacity augmentation in 2022-23.<\/li>\n<li><strong>400 new generation Vande Bharat Trains<\/strong>\u00a0to be manufactured during the next three years.<\/li>\n<li><strong>100 PM GatiShakti Cargo terminals for multimodal logistics<\/strong>\u00a0to be developed during the next three years.<\/li>\n<\/ul>\n<p><strong>Parvatmala<\/strong><\/p>\n<ul>\n<li>National Ropeways Development Program, Parvatmala to be taken up on PPP mode.<\/li>\n<li>Contracts to be awarded in 2022-23 for\u00a0<strong>8 ropeway projects of 60 Km length<\/strong>.<\/li>\n<\/ul>\n<p><strong><u>Inclusive Development<\/u><\/strong><\/p>\n<p><strong>Agriculture<\/strong><\/p>\n<ul>\n<li><strong>Rs. 2.37 lakh crore direct payment to 1.63 crore farmers<\/strong>\u00a0for procurement of wheat and paddy.<\/li>\n<li>Chemical free Natural farming to be promoted throughout the county. Initial focus is on farmer\u2019s lands in 5 Km wide corridors along river Ganga.<\/li>\n<li>NABARD to facilitate fund with blended capital to finance startups for agriculture &amp; rural enterprise.<\/li>\n<li>\u2018Kisan Drones\u2019 for crop assessment, digitization of land records, spraying of insecticides and nutrients.<\/li>\n<\/ul>\n<p><strong>Ken Betwa project<\/strong><\/p>\n<ul>\n<li><strong>1400 crore<\/strong>\u00a0outlay for implementation of the Ken \u2013 Betwa link project.<\/li>\n<li><strong>9.08 lakh hectares<\/strong>\u00a0of farmers\u2019 lands to receive irrigation benefits by Ken-Betwa link project.<\/li>\n<\/ul>\n<p><strong>MSME<\/strong><\/p>\n<ul>\n<li><strong>Udyam, e-shram, NCS and ASEEM portals to be interlinked.<\/strong><\/li>\n<li>130 lakh MSMEs provided additional credit under Emergency Credit Linked Guarantee Scheme (ECLGS)<\/li>\n<li>ECLGS to be extended up to March 2023.<\/li>\n<li>Guarantee cover under ECLGS to be expanded by\u00a0<strong>Rs 50000 Crore to total cover of Rs 5 Lakh Crore.<\/strong><\/li>\n<li><strong>Rs 2 lakh Crore<\/strong>\u00a0additional credit for Micro and Small Enterprises to be facilitated under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE).<\/li>\n<li><strong>Raising and Accelerating MSME performance (RAMP) programme<\/strong>\u00a0with outlay of Rs 6000 Crore to be rolled out.<\/li>\n<\/ul>\n<p><strong>Skill Development<\/strong><\/p>\n<ul>\n<li><strong>Digital Ecosystem for Skilling and Livelihood<\/strong>\u00a0(<strong>DESH-Stack e-portal<\/strong>) will be launched to empower citizens to skill, reskill or upskill through on-line training.<\/li>\n<li>Startups will be promoted to facilitate \u2018<strong>Drone Shakti<\/strong>\u2019 and for\u00a0<strong>Drone-As-A-Service\u00a0<\/strong>(DrAAS).<\/li>\n<\/ul>\n<p><strong>Education<\/strong><\/p>\n<ul>\n<li>\u2018<strong>One class-One TV channel\u2019 programme of PM eVIDYA\u00a0<\/strong>to be expanded to 200 TV channels.<\/li>\n<li>Virtual labs and skilling e-labs to be set up to promote critical thinking skills and simulated learning environment.<\/li>\n<li>High-quality e-content will be developed for delivery through Digital Teachers.<\/li>\n<li>Digital University for world-class quality universal education with personalised learning experience to be established.<\/li>\n<\/ul>\n<p><strong>Health<\/strong><\/p>\n<ul>\n<li>An\u00a0<strong>open platform<\/strong>\u00a0for\u00a0<strong>National Digital Health Ecosystem<\/strong> to be rolled out.<\/li>\n<li>\u2018<strong>National Tele Mental Health Programme<\/strong>\u2019 for quality mental health counselling and care services to be launched.<\/li>\n<li>A network of\u00a0<strong>23 tele-mental health centres<\/strong>\u00a0of excellence will be set up, with NIMHANS being the nodal centre and International Institute of Information Technology-Bangalore (IIITB) providing technology support.<\/li>\n<\/ul>\n<p><strong>Saksham Anganwadi<\/strong><\/p>\n<ul>\n<li>Integrated benefits to women and children through Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0.<\/li>\n<li><strong>Two lakh anganwadis<\/strong>\u00a0to be upgraded to Saksham Anganwadis.<\/li>\n<\/ul>\n<p><strong>Har Ghar, Nal Se Jal<\/strong><\/p>\n<ul>\n<li><strong>Rs. 60,000 crore<\/strong>\u00a0allocated to cover\u00a0<strong>3.8 crore households<\/strong>\u00a0in 2022-23 under Har Ghar, Nal se Jal.<\/li>\n<\/ul>\n<p><strong>Housing for All<\/strong><\/p>\n<ul>\n<li><strong>Rs. 48,000 crore<\/strong>\u00a0allocated for completion of\u00a0<strong>80 lakh houses<\/strong>\u00a0in 2022-23 under PM Awas Yojana.<\/li>\n<\/ul>\n<p><strong>Prime Minister\u2019s Development Initiative for North-East Region (PM-DevINE)<\/strong><\/p>\n<ul>\n<li>\u00a0New scheme PM-DevINE launched to fund infrastructure and social development projects in the North-East.<\/li>\n<li>An initial allocation of\u00a0<strong>Rs. 1,500 crore\u00a0<\/strong>made to enable livelihood activities for youth and women under the scheme.<\/li>\n<\/ul>\n<p><strong>Vibrant Villages Programme<\/strong><\/p>\n<ul>\n<li>Vibrant Villages Programme for development of Border villages with sparse population, limited connectivity and infrastructure on the northern border.<\/li>\n<\/ul>\n<p><strong>Banking<\/strong><\/p>\n<ul>\n<li><strong>100 per cent of 1.5 lakh post offices<\/strong>\u00a0to come on the\u00a0<strong>core banking system<\/strong>.<\/li>\n<li>Scheduled Commercial Banks to set up<strong>\u00a075 Digital Banking Units (DBUs) in 75 districts<\/strong>.<\/li>\n<\/ul>\n<p><strong>e-Passport<\/strong><\/p>\n<ul>\n<li>e-Passports with embedded chip and futuristic technology to be rolled out.<\/li>\n<\/ul>\n<p><strong>Urban Planning<\/strong><\/p>\n<ul>\n<li>Modernization of building byelaws, Town Planning Schemes (TPS), and Transit Oriented Development (TOD) will be implemented.<\/li>\n<li>Battery swapping policy to be brought out for setting up charging stations at scale in urban areas.<\/li>\n<\/ul>\n<p><strong>Land Records Management<\/strong><\/p>\n<ul>\n<li>Unique Land Parcel Identification Number for IT-based management of land records.<\/li>\n<\/ul>\n<p><strong>Accelerated Corporate Exit<\/strong><\/p>\n<ul>\n<li><strong>Centre for Processing Accelerated Corporate Exit (C-PACE)<\/strong>\u00a0to be established for speedy winding-up of companies.<\/li>\n<\/ul>\n<p><strong>AVGC Promotion Task Force<\/strong><\/p>\n<ul>\n<li>An\u00a0<strong>animation, visual effects, gaming, and comic (AVGC) promotion task force<\/strong>\u00a0to be set-up to realize the potential of this sector.<\/li>\n<\/ul>\n<p><strong>Telecom Sector<\/strong><\/p>\n<ul>\n<li>Scheme for design-led manufacturing to be launched to build a strong ecosystem for 5G as part of the Production Linked Incentive Scheme.<\/li>\n<\/ul>\n<p><strong>Export Promotion<\/strong><\/p>\n<ul>\n<li><strong>Special Economic Zones Act to be replaced with a new legislation<\/strong>\u00a0to enable States to become partners in\u00a0<strong>\u2018Development of Enterprise and Service Hubs\u2019.<\/strong><\/li>\n<\/ul>\n<p><strong>AtmaNirbharta in Defence:<\/strong><\/p>\n<ul>\n<li><strong>68% of capital procurement budget earmarked for domestic industry<\/strong> in 2022-23, up from 58% in 2021-22.<\/li>\n<li>Defence R&amp;D to be opened up for industry, startups and academia with 25% of defence R&amp;D budget earmarked.<\/li>\n<li>Independent nodal umbrella body to be set up for meeting testing and certification requirements.<\/li>\n<\/ul>\n<p><strong>Sunrise Opportunities<\/strong><\/p>\n<ul>\n<li>Government contribution to be provided for R&amp;D in Sunrise Opportunities like Artificial Intelligence, Geospatial Systems and Drones, Semiconductor and its eco-system, Space Economy, Genomics and Pharmaceuticals, Green Energy, and Clean Mobility Systems.<\/li>\n<\/ul>\n<p><strong>Energy Transition and Climate Action:<\/strong><\/p>\n<ul>\n<li>Additional allocation of\u00a0<strong>Rs.<\/strong>\u00a0<strong>19,500 crore for Production Linked Incentive for manufacture of high efficiency solar modules<\/strong> to meet the goal of 280 GW of installed solar power by 2030.<\/li>\n<li>Five to seven per cent biomass pellets to be co-fired in thermal power plants:<img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-medium alignright\" src=\"https:\/\/i0.wp.com\/static.pib.gov.in\/WriteReadData\/userfiles\/image\/image001KP8R.jpg?resize=629%2C633&#038;ssl=1\" width=\"629\" height=\"633\" \/><\/li>\n<\/ul>\n<ul>\n<li>\n<ul>\n<li><strong>CO<sub>2<\/sub>\u00a0savings of 38 MMT annually<\/strong>,<\/li>\n<li>Extra income to farmers and job opportunities to locals,<\/li>\n<li>Help avoid stubble burning in agriculture fields.<\/li>\n<li><strong>Four pilot projects to be set up for coal gasification and conversion of coal into chemicals<\/strong> for the industry<\/li>\n<li>Financial support to farmers belonging to Scheduled Castes and Scheduled Tribes, who want to take up agro-forestry.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Public Capital Investment:<\/strong><\/p>\n<ul>\n<li>Public investment to continue to pump-prime private investment and demand in 2022-23.<\/li>\n<li><strong>Outlay for capital expenditure(CAPEX) stepped up sharply by 35.4% to Rs. 7.50 lakh crore in 2022-23<\/strong> from Rs. 5.54 lakh crore in the current year.<\/li>\n<li>Outlay in 2022-23 to be <strong>2.9% of GDP<\/strong>.<\/li>\n<li><strong>\u2018Effective Capital Expenditure\u2019<\/strong>\u00a0of Central Government estimated at\u00a0<strong>Rs.<\/strong>\u00a01<strong>0.68 lakh crore in 2022-23<\/strong>, which is about\u00a0<strong>4.1% of GDP<\/strong>.<\/li>\n<\/ul>\n<p><strong>GIFT-IFSC<\/strong><\/p>\n<ul>\n<li>World-class foreign universities and institutions to be allowed in the GIFT City.<\/li>\n<li>An\u00a0<strong>International Arbitration Centre<\/strong>\u00a0to be set up for timely settlement of disputes under international jurisprudence.<\/li>\n<\/ul>\n<p><strong>Mobilising Resources<\/strong><\/p>\n<ul>\n<li><strong>Data Centres and Energy Storage Systems<\/strong> to be given infrastructure status.<\/li>\n<li>Venture Capital and Private Equity invested more than Rs. 5.5 lakh crore last year facilitating one of the largest start-up and growth ecosystem. Measures to be taken to help scale up this investment.<\/li>\n<li><strong>Blended funds to be promoted for sunrise sectors.<\/strong><\/li>\n<li>\u00a0<strong>Sovereign Green Bonds<\/strong>\u00a0to be issued for mobilizing resources for green infrastructure.<\/li>\n<\/ul>\n<p><strong>Digital Rupee<img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-medium alignright\" src=\"https:\/\/i0.wp.com\/static.pib.gov.in\/WriteReadData\/userfiles\/image\/image001ECY4.jpg?resize=622%2C649&#038;ssl=1\" width=\"622\" height=\"649\" \/><\/strong><\/p>\n<ul>\n<li>Introduction of\u00a0<strong>Digital Rupee by the Reserve Bank of India starting 2022-23<\/strong>.<\/li>\n<\/ul>\n<p><strong>Providing Greater Fiscal Space to States<\/strong><\/p>\n<ul>\n<li><strong>Enhanced outlay for \u2018Scheme for Financial Assistance to States for Capital Investment<\/strong>\u2019:\n<ul>\n<li>From Rs. 10,000 crore in Budget Estimates to\u00a0<strong>Rs.<\/strong>\u00a0<strong>15,000 crore in Revised Estimates for current year<\/strong><\/li>\n<li>\u00a0Allocation of\u00a0\u00a0<strong>Rs.<\/strong>\u00a0<strong>1 lakh crore<\/strong>\u00a0<strong>in 2022-23 to assist the states in<\/strong>\u00a0<strong>catalysing overall investments<\/strong> in the economy: fifty-year interest free loans, over and above normal borrowings.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li><strong>In 2022-23, States will be allowed a fiscal deficit of 4% of GSDP, of which 0.5% will be tied to power sector reforms<\/strong><\/li>\n<\/ul>\n<p><strong>Fiscal Management<\/strong><\/p>\n<ul>\n<li>Budget Estimates 2021-22: Rs. 34.83 lakh crore<\/li>\n<li>Revised Estimates 2021-22: Rs. 37.70 lakh crore<\/li>\n<li><strong>Total expenditure in 2022-23 estimated at Rs. 39.45 lakh crore<\/strong><\/li>\n<li>\u00a0<strong>Total receipts other than borrowings in 2022-23 estimated at Rs. 22.84 lakh crore<\/strong><\/li>\n<li>\u00a0Fiscal deficit in current year: 6.9% of GDP (against 6.8% in Budget Estimates)<\/li>\n<li><strong>Fiscal deficit in 2022-23 estimated at 6.4% of GDP<\/strong><\/li>\n<\/ul>\n<p><strong><u>PART B<\/u><\/strong><\/p>\n<p><strong><u>DIRECT TAXES<\/u><\/strong><\/p>\n<p><strong>To take forward the policy of stable and predictable tax regime:<\/strong><\/p>\n<ul>\n<li>Vision to establish a trustworthy tax regime.<\/li>\n<li>To further simplify tax system and reduce litigation.<\/li>\n<\/ul>\n<p><strong>Introducing new \u2018Updated return\u2019<\/strong><\/p>\n<ul>\n<li>Provision to file an Updated Return on payment of additional tax.<\/li>\n<li>Will enable the assessee to declare income missed out earlier.<\/li>\n<li>Can be filed\u00a0<strong>within two years<\/strong>\u00a0from the end of the relevant assessment year.<\/li>\n<\/ul>\n<p><strong>Cooperative societies<\/strong><\/p>\n<ul>\n<li>Alternate Minimum Tax paid by cooperatives brought down from\u00a0<strong>18.5 per cent to 15 per cent.<\/strong><\/li>\n<\/ul>\n<ul>\n<li>To provide a level playing field between cooperative societies and companies.<\/li>\n<li>Surcharge on cooperative societies reduced from\u00a0<strong>12 per cent to 7 per cent<\/strong>\u00a0for those having total income of more than Rs 1 crore and up to Rs 10 crores.<\/li>\n<\/ul>\n<p><strong>Tax relief to persons with disability<\/strong><\/p>\n<ul>\n<li>Payment of annuity and lump sum amount from insurance scheme to be allowed to differently abled dependent during the lifetime of parents\/guardians, i.e., on parents\/ guardian attaining the age of 60 years.<\/li>\n<\/ul>\n<p><strong>Parity in National Pension Scheme Contribution<\/strong><\/p>\n<ul>\n<li>Tax deduction limit increased from\u00a0<strong>10 per cent to 14 per cent<\/strong>\u00a0on employer\u2019s contribution to the NPS account of State Government employees.<\/li>\n<li>Brings them at par with central government employees.<\/li>\n<li>Would help in enhancing social security benefits.<\/li>\n<\/ul>\n<p><strong>Incentives for Start-ups<\/strong><\/p>\n<ul>\n<li>Period of incorporation extended by\u00a0<strong>one year, up to 31.03.2023<\/strong>\u00a0for eligible start-ups to avail tax benefit.<\/li>\n<li>Previously the period of incorporation valid up to 31.03.2022.<\/li>\n<\/ul>\n<p><strong>Incentives under concessional tax regime<\/strong><\/p>\n<ul>\n<li>Last date for commencement of manufacturing or production under section 115BAB extended by\u00a0<strong>one year i.e. from 31<sup>st<\/sup>\u00a0March, 2023 to 31<sup>st<\/sup>\u00a0March, 2024.<\/strong><\/li>\n<\/ul>\n<p><strong>Scheme for taxation of virtual digital assets<\/strong><\/p>\n<ul>\n<li>Specific tax regime for virtual digital assets introduced.<\/li>\n<li>Any income from transfer of any virtual digital asset to be taxed at the rate of\u00a0<strong>30 per cent<\/strong>.<\/li>\n<li>No deduction in respect of any expenditure or allowance to be allowed while computing such income except cost of acquisition.<\/li>\n<li>Loss from transfer of virtual digital asset cannot be set off against any other income.<\/li>\n<li>To capture the transaction details, TDS to be provided on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold.<\/li>\n<li>Gift of virtual digital asset also to be taxed in the hands of the recipient.<\/li>\n<\/ul>\n<p><strong>Litigation Management<\/strong><\/p>\n<ul>\n<li>In cases where question of law is identical to the one pending in High Court or Supreme Court, the filing of appeal by the department\u00a0<strong>shall be deferred<\/strong>\u00a0till such question of law is decided by the court.<\/li>\n<li>To greatly help in reducing repeated litigation between taxpayers and the department.<\/li>\n<\/ul>\n<p><strong>Tax incentives to IFSC<\/strong><\/p>\n<ul>\n<li>Subject to specified conditions, the following to be\u00a0<strong>exempt from tax<\/strong>\n<ul>\n<li>Income of a non-resident from offshore derivative instruments.<\/li>\n<li>Income from over the counter derivatives issued by an offshore banking unit.<\/li>\n<li>Income from royalty and interest on account of lease of ship.<\/li>\n<li>Income received from portfolio management services in IFSC.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Rationalization of Surcharge<\/strong><\/p>\n<ul>\n<li>Surcharge on AOPs (consortium formed to execute a contract) capped at\u00a0<strong>15 per cent.<\/strong><\/li>\n<li>Done to reduce the disparity in surcharge between individual companies and AOPs.<\/li>\n<li>Surcharge on long term capital gains arising on transfer of any type of assets capped at\u00a0<strong>15 per cent.<\/strong><\/li>\n<li>To give a boost to the start up community.<\/li>\n<\/ul>\n<p><strong>Health and Education Cess<\/strong><\/p>\n<ul>\n<li>Any surcharge or cess on income and profits\u00a0<strong>not allowable<\/strong>\u00a0as business expenditure.<\/li>\n<\/ul>\n<p><strong>Deterrence against tax-evasion<\/strong><\/p>\n<ul>\n<li>No set off, of any loss to be allowed against undisclosed income detected during search and survey operations.<\/li>\n<\/ul>\n<p><strong>Rationalizing TDS Provisions<\/strong><\/p>\n<ul>\n<li>Benefits passed on to agents as business promotion strategy taxable in hands of agents.<\/li>\n<li>Tax deduction provided to person giving benefits, if the aggregate value of such benefits exceeds Rs 20,000 during the financial year.<\/li>\n<\/ul>\n<p><strong><u>INDIRECT TAXES<\/u><\/strong><\/p>\n<p><strong>Remarkable progress in GST\u00a0<\/strong><\/p>\n<ul>\n<li>GST revenues are buoyant despite the pandemic \u2013 Taxpayers deserve applause for this growth.<\/li>\n<\/ul>\n<p><strong>Special Economic Zones<\/strong><\/p>\n<ul>\n<li>Customs Administration of SEZs to be fully IT driven and function on the\u00a0<strong>Customs National Portal\u00a0<\/strong>\u2013 shall be implemented by 30<sup>th<\/sup>\u00a0September 2022.<\/li>\n<\/ul>\n<p><strong>Customs Reforms and duty rate changes<\/strong><\/p>\n<ul>\n<li>Faceless Customs has been fully established. During Covid-19 pandemic, Customs formations have done exceptional frontline work against all odds displaying agility and purpose.<\/li>\n<\/ul>\n<p><strong>Project imports and capital goods<\/strong><\/p>\n<ul>\n<li>Gradually phasing out of the concessional rates in capital goods and project imports; and applying a moderate tariff of\u00a0<strong>7.5 percent<\/strong>\u00a0\u00a0 \u2013 conducive to the growth of domestic sector and \u2018Make in India\u2019.<\/li>\n<li>Certain exemptions for advanced machineries that are not manufactured within the country shall continue.<\/li>\n<li>A few exemptions introduced on inputs, like specialised castings, ball screw and linear motion guide - to encourage domestic manufacturing of capital goods.<\/li>\n<\/ul>\n<p><strong>Review of customs exemptions and tariff simplification<\/strong><\/p>\n<ul>\n<li>More than\u00a0<strong>350 exemption entries proposed<\/strong>\u00a0to be gradually phased out, like exemption on certain agricultural produce, chemicals, fabrics, medical devices, &amp; drugs and medicines for which sufficient domestic capacity exists.<\/li>\n<li>Simplifying the Customs rate and tariff structure particularly for sectors like chemicals, textiles and metals and minimise disputes; Removal of exemption on items which are or can be manufactured in India and providing concessional duties on raw material that go into manufacturing of intermediate products \u2013 in line with the objective of \u2018Make in India\u2019 and \u2018Atmanirbhar Bharat\u2019.<\/li>\n<\/ul>\n<p><strong><u>Sector specific proposals<\/u><\/strong><\/p>\n<p><strong>Electronics<\/strong><\/p>\n<ul>\n<li>Customs duty rates to be calibrated to provide a graded rate structure - to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart meters.<\/li>\n<li>\u00a0Duty concessions to parts of transformer of mobile phone chargers and camera lens of mobile camera module and certain other items \u2013 To enable domestic manufacturing of high growth electronic items.<\/li>\n<\/ul>\n<p><strong>Gems and Jewellery<\/strong><\/p>\n<ul>\n<li>Customs duty on cut and polished diamonds and gemstones being reduced\u00a0<strong>to 5 per cent<\/strong>; Nil customs duty to simply sawn diamond - To give a boost to the Gems and Jewellery sector<\/li>\n<li>A simplified regulatory framework to be implemented by June this year - To facilitate export of jewellery through e-commerce.<\/li>\n<li>Customs duty of at least Rs 400 per Kg to be paid on imitation jewellery import - To disincentivise import of undervalued imitation jewellery.<\/li>\n<\/ul>\n<p><strong>Chemicals<\/strong><\/p>\n<ul>\n<li>Customs duty on certain critical chemicals namely methanol, acetic acid and heavy feed stocks for petroleum refining being reduced; Duty is being raised on sodium cyanide for which adequate domestic capacity exists \u2013 This will help in enhancing domestic value addition.<\/li>\n<\/ul>\n<p><strong>MSME<\/strong><\/p>\n<ul>\n<li>Customs duty on umbrellas being raised to 20 per cent. Exemption to parts of umbrellas being withdrawn.<\/li>\n<li>Exemption being rationalised on implements and tools for agri-sector which are manufactured in India<\/li>\n<li>Customs duty exemption given to steel scrap last year extended for another year to provide relief to MSME secondary steel producers<\/li>\n<li>Certain Anti- dumping and CVD on stainless steel and coated steel flat products, bars of alloy steel and high-speed steel are being revoked \u2013 to tackle prevailing high prices of metal in larger public interest.<\/li>\n<\/ul>\n<p><strong>Exports<\/strong><\/p>\n<ul>\n<li>To incentivise exports, exemptions being provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging boxes.<\/li>\n<li>Duty being reduced on certain inputs required for\u00a0<strong>shrimp aquaculture<\/strong>\u00a0- to promote its exports.<\/li>\n<\/ul>\n<p><strong>Tariff measure to encourage blending of fuel<\/strong><\/p>\n<ul>\n<li>Unblended fuel to attract an additional differential\u00a0<strong>excise duty of Rs 2\/ litre<\/strong>\u00a0from the 1<sup>st<\/sup>\u00a0of October 2022 - to encourage blending of fuel.<\/li>\n<\/ul>\n<h4><strong>Impact on sectors - the winners and losers:<\/strong><\/h4>\n<p>Finance minister\u00a0<a href=\"https:\/\/www.livemint.com\/budget\/news\/budget-2022-23-live-updates-finance-minister-nirmala-sitharaman-narendra-modi-share-market-11643679480576.html\">Nirmala Sitharaman<\/a> presented a budget that calls for a bigger spend to fire up growth in Asia\u2019s third-largest economy, as it stages a world-beating recovery from the pandemic. Sitharaman proposed increasing the size of the economy\u2019s annual spending to 39.5 trillion rupees ($529 billion) to support growth plans.<\/p>\n<p>Here\u2019s a list of winners and losers from the federal budget announcements:<\/p>\n<p style=\"text-align: center;\"><strong>WINNERS<\/strong><\/p>\n<p><strong>EV Battery Makers<\/strong><\/p>\n<p>Crucial for plans to expand India\u2019s ambitions to promote clean transport technology, battery makers will gain from a new swapping policy for electric vehicles announced by Sitharaman. Beneficiaries will include Exide Industries Ltd. and Amara Raja Batteries Ltd.<\/p>\n<p><strong>Transport, Infrastructure<\/strong><\/p>\n<p>Plans for investments in remote roads, mass transit in cities and 400 new \u201cVande Bharat\" trains in three years will benefit key infrastructure players including Larson &amp; Toubro Ltd., GMR Infrastructure Ltd., KNR Constructions Ltd., IRB Infra Ltd., Container Corporation of India Ltd., Allcargo Logistics Ltd. and Indian Railway Catering and Tourism Corp.<\/p>\n<p><strong>Metals<\/strong><\/p>\n<p>The government\u2019s 600 billion rupee allocation for piped water to 38 million homes and spending on logistics will benefit India\u2019s metals producers, including Vedanta Ltd., Tata Steel Ltd. and JSW Steel Ltd.Jindal Stainless Ltd. Pipemakers Jain Irrigation Systems Ltd., KSB Ltd., Kirloskar Brothers Ltd. could also benefit.<\/p>\n<p><strong>Solar\u00a0<\/strong><\/p>\n<p>Production-linked incentives worth 195 billion rupees for solar modules to boost local manufacturing will turn the focus on growth at leading panel manufacturers, including Tata Power Ltd., \u00a0Suzlon Energy Ltd., Adani Enterprises Ltd. and Reliance Industries Ltd.<\/p>\n<p><strong>Cement, Construction<\/strong><\/p>\n<p>The government\u2019s plan to build more homes for low-income earners across cities will mean more contracts for cement and construction majors UltraTech Cement Ltd., Ambuja Cements Ltd, Birla Corp. and ACC Ltd..<\/p>\n<p><strong>Telcos, Data Centers<\/strong><\/p>\n<p>The launch of 5G auctions in 2022 will help boost telco sector and the classification of data storage as infrastructure spending will benefit companies including Bharti Airtel Ltd., Reliance Industries Ltd., Vodafone Idea Ltd., Mahanagar Telephone Nigam Ltd., HFCL Ltd., Tejas Networks Ltd., Sterlite Technologies Ltd..<\/p>\n<p><strong>Digital Finance\u00a0<\/strong><\/p>\n<p>Digital financial services providers in India are set to gain after Tuesday\u2019s budget focused on expanding such services. These include PB Fintech Ltd., the parent of PolicyBazaar, newly listed Paytm\u2019s owner One 97 Communications Ltd., eClerx Services Ltd. and Paisalo Digital Ltd., which provides smaller loans through its app.<\/p>\n<p><strong>Defense Manufacturers<\/strong><\/p>\n<p>Companies manufacturing defense equipment look to benefit from Sitharaman\u2019s plan to earmark 68% of the sector capex for local companies in the annual budget. Gainers include Larsen &amp; Toubro Ltd., Bharat Forge Ltd. and Paras Defence and Space Technologies Ltd. The drone start ups that could benefit include Zeus Numerix, New Space India Ltd, and BotLab Dynamics.<\/p>\n<p style=\"text-align: center;\"><strong>LOSERS<\/strong><\/p>\n<p><strong>State-Run Banks<\/strong><\/p>\n<p><em><strong>India plans to start a digital currency<\/strong><\/em>, shifting the rules for traditional banking in the country as it tries to keep pace with the global move toward virtual financial instruments. The move will affect India\u2019s archaic lenders <strong><em>State Bank of India Ltd., Bank of Baroda, Canara Bank, Union Bank of India, Bank of India and Punjab National Bank.<\/em><\/strong><\/p>\n<p><strong>Crypto Players<\/strong><\/p>\n<p>The decision to levy 30% tax on profits from digital asset transactions, including cryptocurrencies and non-fungible tokens, may rule out a blanket ban on such tokens for now but it will make trading in them less profitable. This will also affect crypto exchanges. Players affected include WazirX, Zebpay, CoinDCX and Coinswitch Kuber.<\/p>\n<p><strong>Coal and Thermal Power<\/strong><\/p>\n<p>The companies to watch after India\u2019s incentives for solar power and plans to use biomass pellets in thermal power plants in a bid to rely less on coal include Coal India Ltd. Singareni Collieries Co., Adani Enterprises Ltd. These companies are suppliers of imported coal.<\/p>\n<p><strong>Stainless Steel<\/strong><\/p>\n<p>India has made plans to revoke some anti-dumping and countervailing duties on stainless steel, coated steel flat products, bars of alloy steel and high-speed steel, given the rise in metal prices. This is expected to affect the biggest producer Jindal Stainless Ltd. and Tata Metaliks Ltd.<\/p>\n<p><strong>Automobile Makers<\/strong><\/p>\n<p>Car manufacturers, which received little attention from the finance minister, continue to reel under a global semiconductor crunch. The S&amp;P BSE Auto Index was the worst performer among 19 sectoral gauges after Tuesday\u2019s budget announcement. Companies to watch include Maruti Suzuki India Ltd., Tata Motors Ltd, Mahindra &amp; Mahindra Ltd.<\/p>\n<p>Source: PIB.GOV.In (https:\/\/pib.gov.in\/PressReleasePage.aspx?PRID=1794165) ; Livemint<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>FM Nirmala Sitharaman presented Union Budget 2022 in Parliament. While keeping the Income Tax Slabs unchanged, FM announced a major change in taxation as far as virtual digital assets are concerned. Union Finance Minister Nirmala Sitharaman proposed a 30 per cent tax on income from transactions in such assets. Furthermore, FM Also proposed Gati Shakti Programme which will boost infrastructure and create more jobs. On education sector, FM has announced launch of a new Digital University as well as expansion of PM eVIDYA with addition of new TV channels for supplementary education.<\/p>\n","protected":false},"author":1,"featured_media":4775,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,180,160,722,10,200,37,120,255,268,182,184,2,13,751],"tags":[1049,35,278],"class_list":["post-4774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-jobs","category-budget","category-currencies","category-economic-reforms","category-economy","category-examination","category-finance","category-finance-ministry","category-financial-bill","category-fiscal-policy","category-general-budget","category-gst","category-interview","category-jaiibcaiib","category-lic-ado-interview","tag-budget-2022","tag-economy","tag-finance-ministry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2022\/02\/Budget-22-23.jpg?fit=1208%2C1325&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/4774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4774"}],"version-history":[{"count":2,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/4774\/revisions"}],"predecessor-version":[{"id":4777,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/4774\/revisions\/4777"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/media\/4775"}],"wp:attachment":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}