FM Nirmala Sitharaman’s fourth budget presented today
Empathy for those who bore Covid pandemic impact Strong position to withstand challenges
7 growth engines in the gatishakti plan providing impetus for growth. Sabka prayaas for strong growth
2023 announced year of Sustainable growth.
Strategic handover of AI complete LIC IPO expected soon
Boost to agriculture with large scale incentives
Scheme to lower dependence on oil seeds. Comprehensive domestic production of oil seeds
2.37 lac crore allotted for agro procurement Drones provided for agriculture
Funds provided via NABARD Digitisation of land records
Highways to be expanded by 25000 kms
ECLGS extended till March 2023 2 lac crores for MSMEs
Guarantee cover to increased to 5 lac crores
Supplementary teaching for students – program of e vidya extended to 400 TV channels- to be provided in regional languages
High quality e content to be developed thru internet mobiles digital tools
A digital university to be established with world class education in regional languages.
A national tele mental health program to be launched. National digital health register to be rolled out.
5 lac crore cover for hospitality sector.
Audio visual aids for anganwadis. 2 lacs anganwadis to be upgraded as Saksham. 600 crore Jal jeevan mission.
A new scheme for north eastern states.
Increase quality in backward districts. Aspirational Distt to be connected. To focus on lagging areas. 1500 crores for the north east.
PM E vikas scheme to focus on infrastructure.
1.50 lacs Post offices to be upgraded to core banking via net banking mobile banking. 75 digital banking units soon.
Various compliances were reduced for ease of doing business 2.0. 1486 union laws were repealed with idea of trust based governance.
A single window portal launched for e grievance in 2018 was successful. Issuance of e passports via futuristic technology with e chips.
400 new vande bharat trains to be introduced.
Battery swapping policy announced. Clean technology for transport. Mobility zones for e vehicles.
One nation one registeration.
End to end e bill system for procurement to be introduced in central and state governments and offices. Tracking can be done of the supply chain.
Spectrum auctions in 2022 for 5G. Optical fibre contracts to be awarded for villages and rural areas. PPE models to be used.
PLI scheme linked with 5G rollout.
AI, drones, genomics, green energy has great opportunities for sustained development.
Private industries invited for R & D for defence procurement. 68% of budget for Make in India defence.
35.4% jump in capex to 7.5 lac crores. Outlay for capital Expd stepped up by 2X times equalling 2.9% of GDP. Effective cap expd will be 4% of GDP.
Sovereign green bonds to be issued and proceeds to be deployed in reducing carbon emissions.
48000 crores allocated for housing schemes.
Introduction of central bank digital currency. Digital rupee introduced via blockchain technology issued and monitored by RBI. CBCD to be introduced.
1 lac crores allocation for states on interest free loans. Fiscal Management:
fiscal deficit of 37.7 lac crores
39.54 lac expenditure outlayed. 6.9% fiscal deficit of GDP. PART B
DIRECT TAX
Intend to more reforms to simplify tax regime and reduce litigations.
Introducing new tax returns systems.
To provide opportunities to correct errors and omissions, updated itr can be filed within 2 years of end of relevant Asstt year.
To avoid lengthy process of adjudication. To provide trust based on tax payers for voluntary compliance.
Reduce AMT for cooperatives at 18% to 15%. Company’s pay at 15%. Reduce surcharge from 12% to 7% for incomes above 1 crores.
Parent or guardian can take benefit of annuity amount paid for differently abler persons or dependents till 16 years.
NPS Tier 1 deduction given at 10% for state Govt employees is increased to 15% making it par with central Govt employees.
Incentives for start ups. In view of Covid, eligible start up period increased by 1 year to 31.3.2023.
New manufacturing domestic cos under section 115BAB – last date for commencement of production increased by one more year to 31.3.2024
Scheme of taxation of Virtual digital transaction asset- any income to be taxed at 30% with no deduction except cost of acquisition. Loss cannot be set off against any other income. Tds at 1%.
Gift to be taxed in the hands of recipient.
Litigation management- if a question of law is pending at jurisdictional courts, filing of appeal to be deferred till the outcome of that appeal.
Rationalisation of surcharge – the income of aops taxed at 37% reduced to 15%. LTCG surcharge on transfer of any type of asset capped at 15%
Clarification of health secondary cess as allowable expenditure – income tax expenses is not allowed. Some courts have allowed cess as allowable expense. For clarification, cess is not allowed as expense.
Brought forward loss vs undisclosed income – no set off of any loss allowed against any undisclosed income during search or survey.
Benefits to agents – tax deduction to agents above 20,000 rs in a financial year. Indirect Taxes
Gst has been a landmark reform. Fully IT driven Gst regime. Gst revenues are buoyant.
Gst revenue collections at 1.46 lacs crores for the month of January 2021 being highest ever.
SEZs – customs reforms to be implemented by 30.09.2022. Customs formations, project imports, capital goods outlay to be upgraded.
Proposed phase out and apply moderate tariffs on capital goods. More than 350 exemptions will be phased out gradually.
Custom duty rates rationalised for hearing aids, mobile cameras, to promote domestic manufacturing.
Custom duty on cut and polished diamond reduced to 5%. Customs duty on 400 rs per kg on import of imitation jewellery. Duty exemption on steel scrap extended.
Anti dumping duty on bars of steel been revoked.
To incentivise exports, duty reduced on shrimp infra. Blending of fuel – u blended fuel to attract Adll excise duty.
