Budget, budget on the way, what does it has for us today? The day has come when India Budget 2022 announced by India’s Finance minister Nirmala Sitharaman will reflect upon and will impact India’s financial system and economy in 2022. What does this India Budget 2022 hold for you as an individual? Let us know the India Budget 2022 highlights and details:
Table of Contents
India Budget 2022 highlights:
- PM Gatishakti program emphasized upon
- Public transport system to be developed. Funds allocated for the same.
- Railways, national highways, airports, and other modes of transport receive proper financial aid and support from the government.
- Defense sector expansion
- Capital procurement was increased from 58% to 68% in Defense for domestic industry.
- Defense R&D budget will be opened for startups, academic institutions consuming 35% of the R&D budget.
- Government to introduce Sovereign Green bonds
- These bonds are new to India, and the funds received from these bonds will be used to reduce carbon footprints in India.
- Further, the investment will be used in the public sector.
- Boost for corporates
- The surcharge imposed on unlisted share sales has been reduced from 37.5% to 15%.
- ECLGS Scheme for MSMEs extended to March 2023 and expanded.
- 15% lower tax rate for manufacturing units extended for one more year till March 2024.
- Addressed issues of affordable housing and tap water accessibility
- Rs 48,000 crores for FY23 is allocated for constructing houses under the PM Housing scheme.
- Rs 60,000 crores is further allocated to ensure the tap water supply at every house possible. The scheme is called Har Ghar Nal Se Jal Yojna, it has currently provided water accessibility at homes for 8.7 crores population.
- Virtual Digital assets to be taxed at 30%
- Virtual assets simply include Cryptocurrencies and NFT’s (non-fungible tokens) which are virtual assets that will attract flat 30% taxation along with 1% TDS if holdings exceed a certain value. The profits or losses out of this transaction will be taxed irrespectively.
- India will be launchings its digital rupee issued by RBI in FY23.
- Financial inclusion
- All the Indian post offices will move to an online mode of operations. This will help in easy accessibility and quick information.
- The Minority Affairs Ministry was Rs 5020.50 crore in 2022-23. Rs 1425 crore is for the pre-matric scholarship scheme and Rs 515 crore is for the post-matric scholarship. Over 491 crores have been allocated for skill development and livelihood initiatives.
- Promote agricultural produce by promoting natural farming. Promote the use of natural fertilizers and avoid chemicals. Organic farming is the future.
- Products to become costlier or cheaper this year?
If the below products are imported then they will become costlier:
- Imitation Jewellery
- Single or multiple loudspeakers
- Headphones and earphones
- Smart meters
- Solar cells
- Solar modules
- X-ray machines
- Parts of electronic toys
While below products will become cheaper because of reduced custom duty
- Frozen mussels
- Frozen squids
- Cocoa beans
- Methyl alcohol
- Acetic acid
- Cut and polished diamonds
- Camera lens for cellular mobile phone
The above were the key highlights of India Budget 2022. Think they left out on lots, that’s true let’s continue reading.
What does this India Budget 2022 mean to us?
While to a common person like us, this budget would hardly impact our daily lives. The India budget 2022 was more focused on the overall development of the country and not specific to the common masses. Though affordable housing and the supply of water at homes will again impact lower-income groups to some extent, however, the urban population who already have these facilities will not be bothered. The overall development of infrastructure, defense, and other broader objectives are time intensive which will start trickling down the benefits to common people at a much later stage. Besides virtual asset taxation is for those who have enough capital to invest in cryptocurrencies which again would be roughly 1% of the whole population of India.
Below are some of the takeaways for common people like us:
Most of us are working population who pay taxes on time. We belong to a middle-income group and have a hectic daily schedule and wait until the month-end for the salary to get credited to our bank accounts. Our salary is completely exhausted due to increasing daily expenses with no scope of saving. Pandemic has been hard on everyone, job losses, deaths, increased medical expenses, the work-life imbalance was the worst outcome. Thus, looking from that standpoint below are the ways how this India budget 2022 will impact us.
- No Income tax slab changes for salaried people.
- No Income tax exemption of any kind to salaried population apart from already existing exemptions.
- Employees of the state governments will be able to claim a tax benefit of 14% on the NPS contribution made by their employer, i.e., state government from FY 2022-23 onwards.
- Taxpayers will now be given more time to file their ITR.
The expectation of common people from Budget:
- Change in the Income-tax slab, increasing the current exemption limit from Rs 2.5 lakhs to Rs 5 lakhs would have helped middle-income groups.
- Further tax exemptions of at least Rs 50,000 more apart from all the tax exemptions available.
- Considering pandemics still making rounds, offering free health insurance to everyone to take care of the medical costs would have helped.
- Creating employment opportunities for youth and those who have suffered job loss due to pandemic.
- Promoting new entrepreneurs especially women with more tax reliefs.
India is a democratic country, thus everyone expects that the Government will value them. The people expect that the Government would work towards improving their lives and fixing their problems which would reflect in India Budget 2022.
- The share market was down right after the India Budget 2022 was announced, but slowly it picked up the pace. Probably the budget was not very well received by the common masses as reflected in the market sentiments.
What are your thoughts on India Budget 2022, did it make you happy?
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