Finance Minister Nirmala Sitharaman introduced her fourth consecutive Union Budget in Parliament on February 1, 2022.

It was also the sixth budget session to take place since the outbreak of the pandemic in January 2020 and also arrives in a month in which the assembly Elections will be held in five states.

The Union Budget is the annual report of India as a country. It contains the government of India’s revenue and expenditure for the end of a particular fiscal year, which runs from April 1 to March 31.

The Union Budget is the most extensive account of the government’s finances, in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget. It also contains estimates for the next fiscal year. Keeping with recent tradition, Union Finance Minister Nirmala Sitharaman will announce Union Budget 2022, on February 1.

The Union Budget is the most comprehensive account of government

 finances, aggregating income from all sources and expenditure from all activities undertaken. It consists of the revenue budget and the capital budget. It also includes estimates for the next fiscal year. Union Finance Minister Nirmala Sitharaman will announce the 2022 Union budget on February 1.

 

Ms Sitharaman said that due to the difficulties people are facing due to the pandemic, a conscious decision has been made not to collect taxes. The finance minister said India’s growth is estimated at 9.2%, the highest among any major economy.

PM Narendra Modi says budget is PEOPLE-FRIENDLY and PROGRESSIVE

During the presentation of the Union’s budget, Prime Minister Narendra Modi hailed the 2022 Union Budget as “people-friendly” and “progressive”, saying on Tuesday that the budget brings energy and strength to India’s development trajectory, especially at the time when the country is battling the pandemic.

He added  that the country is expected to grow by 9.27% ​​in the coming year. Focusing on four pillars of development – inclusive development, productivity improvement, energy transition and climate action – The Budget gives a blueprint of economy from India at 75 to India at 100, Sitharaman said.

“This budget brings more investment, more growth, more infrastructure and more jobs,” he said. He added that Indian youth will see this budget as the one that will give wings to their ambitions, and adds that it is worth noting the emphasis placed on futuristic technologies in all spheres and will benefit a cross-section of our citizens. However, he said that he would discuss the ‘people friendly and progressive’ budget in detail on February 2.

The budget estimates the central government’s real capital expenditure at Rs 10.68 lakh crore in 2022-23, equivalent to about 4.1% of GDP. Gross GST collection for the month of January 2022 is Rs 140,986 crore, the highest since the tax began in 2017, the finance minister said.

In a major push for the digital currency, he claimed that the RBI will issue the digital rupee from 2022-23 using block chain technology, which will give the economy a huge boost, the finance minister said.
She added that the income from the transfer of virtual digital assets will be taxed at a rate of 30%. India’s economic e-prints are at 75 versus India’s at 100, Ms Sitharaman said.

Announcements from her Budget proposals

Here are top announcements from her Budget proposals so far:
Wider scope of revaluation Further revaluations of income tax returns will be made in the future due to the 2022 budget proposals that have expanded the scope of issuing revaluations.

Last year, the revaluation window was reduced from six years to three years and only asset-related cases could be opened for revaluation for up to 10 years. Budget 2022 says that even if you have declared doubtful expenses, these statements can now be opened up to 10 years from the date of filing.

• Tax, surcharge non-deductible

The government has clarified that taxes and allowances cannot be claimed as expenses while deductions are required for business and professional income. This puts an end to many long disputes. The provisions of this Article shall apply retroactively from 2005.

• No fee for delayed returns

There is a penalty of up to Rs 5,000 for securing returns after the due date. Budget 2022 has proposed an amendment to Article 119 to provide for a fee waiver for submission failure within due date.

• Higher tax deduction at source for non-filers

Last year’s budget had doubled the TDS rate (1-10 per cent) for those who had not made tax returns in the last two years. The 2022 budget has fixed this window. Now, even if you did not file your tax returns last year, then pay a higher TDS.

Indeed, the TDS applies to the bank account and deposit interest, dividends on shares and mutual funds, property sales, rental income, NRI payments and high value sales. It varies between 1 and 20 percent. As part of the 2022 budget, revenue from virtual digital assets or crypto currencies was also subject to 1 percent TDS.

• Focus on agriculture

The fiscal roadmap presented by Sitharaman will benefit all sectors of the economy, “with a particular focus on agriculture,” the prime minister claimed. The announcement of a “minimum support price of more than Rs 2.25 crore” is intended to benefit farmers as the amount will be “transferred directly to them”, he said.

“Guarantees for loans and many new programs for MSMEs have been announced,” said the Prime Minister. “This budget brings new hope and opportunities for the people. It strengthens the economy; it’s full of “more infrastructures, more investment, more growth and more jobs”. There is also a new supply of green spaces; “The budget provides a bright future for young youth,” he said.

The decision to promote natural agriculture on the banks of the Ganga River, announced in the budget, will not only benefit farmers in Uttarakhand, Uttar Pradesh, Jharkhand, Bihar and West Bengal, but will also help in making “river Ganga chemical-free”, he added.

“For the first time in the country, the Parvat Mala program is being extended to regions such as Himachal Pradesh, Uttarakhand, J&K and the North-East. It will enable a modern transport and connection system in hills. This will provide strength to border villages,” prime minister said.

• Union Budget focused more on digitization

“This year’s Union Budget focused more on digitization, start-ups and good news for the VC/PE industry. The initiatives announced today by the government will not only boost young entrepreneurs, but also boost to small businesses in the country. The launch of the Digital Rupee using block chain technology just shows that India is on the right path towards adopting technology and this is certainly a positive move.

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