February 1, 2022, New Delhi: India’s Finance Minister, Nirmala Sitharaman, picked up the news headlines as she went live with budget 2022 in India. There is a buzz about the accurate insights related to budget on social media platforms like Facebook and Twitter.
News about budget hit the channels as the honorable Finance minister started with the union budget live on Lok Sabha TV. She unveils important aspects in her 120 minutes speech that discusses various ways to strengthen the national economy, increase exemptions, and provide tax benefits.
After an inevitable survey over the individual pointers and listings of the budget, this budget blog 2022 is out here with all you are eager to know.
Highlights of Union Budget 2022
Our finance minister represented the forecast on India’s budget that explains important initiatives that result in better integration of the global supply chain. Her plan aimed to reform India’s CAPEX with a pre-determined and feasible fiscal reducing strategy.
Other trending inclusions of this year’s budget are:
- The finance minister re-arranged the tax structures by reducing the corporate income tax to 25%. This would generate a promising 15% tax rate that supports the evolution of newer manufacturing firms.
- Prime Minister added that the budget design was to uplift the poor and middle class to bring about an equilibrium in the society.
- Indian economy is struggling with the post-pandemic effects considering that the minister is waiving certain tax breaks. This is a big relief for the salaried class as they could end up saving some bucks in the end.
- The emphasis of this budget focuses on augmenting the pandemic recovery of the country and laying a better foundation for the educational system in India.
- New rules state that employees are subject to many tax benefits. The standard deductions cannot restrict the money earned through WFH allowances.
Tax Revisions as per Budget Blog 2022
Though there are a few tax rate reductions, those under a specific slab can avail only specific exemptions through the former tax scheme. There are 7 income levels in each tax slab, of which income till Rs.2.5 is exempted from taxation. Hence, those making earnings till Rs. 5 lakhs have a minimal taxation amount to pay.
People in the slab of INR 5 lakhs- 7.5 lakhs need to pay 10% of their earnings as taxes. As the slab enhances to rs. 10 lakh each year, the tax rate shoots till 15%, and 20% taxation is applicable for individuals earning from Rs. 10 Lakh to Rs. 12.5 Lakhs. Earners from rs. 12.5 lakh to Rs. 15 lakhs should pay 25% taxation on their earnings. Those crossing the annual income of more than Rs. 15 lakhs need to pay 30% taxation.
Any exemption as per Section 80C is not applicable in this framework. Few exemptions like home loans, insurance, and other basic deductions are missing from the new tax system. There has been a 15% capping surcharge applicable on capital gains. Taxation is to be levied on receivers of gifts bought through cryptocurrency. The minimum taxation limit for co-operative societies gets reduced to 15%.
Revelations about Jobs in Budget
- Extension of ECLGS till March 2023 proclaims over 60 lakh more jobs in the next 5 years.
- Central and state governments would bolster the entrepreneurial opportunities for the people.
- Creating a better digital ecosystem attracts more work-from-home jobs to render livelihood.
- Multiple payment layers and API-based credentials to search for more opportunities and jobs.
Remarkable steps on Digital Currency
- The government will launch a blockchain-based digital currency in 2022-23.
- There might be launching a specific taxation scheme for virtual digital assets.
- Complete accountability would be maintained for creating policies on virtual digital assets.
Housing and Urban Development Plans Unveiled
- Allotment of Rs. 48,000 Crore for the PM Awas Yojana.
- By 2022-23, over 80 lakh houses are subject to completion in both rural and urban areas.
- Allocation of Rs.60,000 Crore to allocate sufficient tap water access to almost 3.8 cr households.
- Advanced by-laws for building and construction to be introduced soon.
- Government plans to allow public transport even in the urban regions.
Important Facts to Know about Union Budget
- Union budget is curated by a constructive approach and collective analysis of finance ministry with other parliamentary ministries.
- The railway budget was released separately until 2017 post which it was amalgamated with the union budget.
- The average duration of the speech during budget lasts from almost 90 minutes to 120 minutes.
- The entire 2022 budget given by Nirmala Sitharaman lasted for 120 minutes.
The budget 2022 was centric on offering basic facilities to the country’s middle class, poor, and youth. Our PM intended to make youth self-reliant and release policies that enable them to unfold new success paths and avenues. This years union budget is ‘Progressive’ and ‘People-Friendly’ as per the statement released by the finance minister.
Finance Minister Nirmala Sitharaman hinted that the budget forecasts an anticipated growth of almost 9.27% in the next year. Multiple modules of development triggering the economy’s growth include productivity enhancement, inclusive development, climate action, and the energy transition. She also clarified that the overall capital expenditure in 2022- 23 was around Rs. 10.68 lakh crore, sums up to 4.1% of the overall country’s GDP.
An interesting budget highlight is an inclination towards digital currency and the use of such channels to increase the virtual outflow of money in the country. There has been an allocation of Rs.5.25 lakh crore for the defense budget considering the external threats to the nation.
Concluding words
Though the budget in India released on February 1 had some good signs for the people accommodating to various sectors, the middle-class taxpayers get disappointed yet again. As there is no relief in the tax slab, they are in the lurch and not very satisfied with the calculative move of the finance ministry in India.
On the other hand, there has been a significant change in digitalization, such as promoting virtual transactions introduction of epassports with embedded chips in coming years. Overall, the budget managed to create a balance. Yet, it had a major extension towards advancements in health, telecom, technology, infra, and other sectors while negating the taxation benefits most people were eyeing at!