Budget 2022: Finance Minister Nirmala Sitharaman has presented the Union Budget. In the budget, the Finance Minister has announced provisions related to income tax. The government has not given any tax related concession to the tax payers. The entire focus of the Finance Minister in the budget was on Digital India. The Finance Minister said that this year 5G will be launched in the country. Along with this, the Reserve Bank will launch digital currency. Apart from this, ‘Digital Desh e-portal’ will be launched for skill development in the education sector. The Finance Minister also announced ‘One Class, One TV Channel’ of ‘PM e Vidya’.
In the budget, a big relief has been given in the tax on capital gains on long-term capital gains. The Finance Minister announced in the budget speech that now the surcharge on any capital gain will not be more than 15%. Notably, capital gains tax for a long period of time is subject to a maximum surcharge of 15% on earnings from shares of already listed companies. Now with this decision of the budget, a similar surcharge will be taken from investors like real estate, bonds, debentures etc. Experts say that this is a better step taken by the Finance Minister. Lessons have been learned in the budget from the failure of the government last year regarding disinvestment. The government has drastically cut the disinvestment proceeds from Rs 1.75 lakh crore to Rs 78,000 crore in the current financial year.
There was also a big announcement on the Indian digital currency in comparison to bitcoin in the budget. Presenting the Union Budget on Tuesday, Sitharaman said that the Reserve Bank of India (RBI) may introduce a digital currency in the next financial year starting April 2022 to promote the digital economy and effective cash management. The Finance Minister has named it Digital Rupee.
what’s cheap in the budget
Many such announcements have been made in the budget which will have an impact on the essential things you use. Some things will be cheap and some will be burdened by which they will become expensive. Let us know which things will be cheaper after the budget and whose price will increase. Leather, textiles, agricultural goods, packaging boxes, polished diamonds, exotic umbrellas, mobile phone chargers and gems and jewelery will be cheaper in the budget. Custom duty on gems and jewelery has been reduced to 5 per cent.
what will be expensive
The import duty on capital goods has been levied at 7.5 per cent, eliminating the exemption from import duty. Due to this, foreign umbrellas will be expensive.
Taxpayer expected relief from budget
- In the fiscal year ending in March, Asia’s third-largest economy is expected to expand by 9.2 per cent. Earlier in the last financial year, the economy had declined by 7.3 percent.
- It is expected that Sitharaman will push the growth agenda while supporting growth as well as being financially cautious and will adopt the path of higher capital expenditure for this. This will accelerate the investment cycle and employment. Along with this, the Finance Minister will adopt a financial protectionist stand.
- In the infrastructure sector, there may be more allocation for roads, railways and water. Measures to strengthen small businesses and the rural economy can also be part of the budget.
- It is expected that the government may increase the income tax exemption limit from Rs 2.5 lakh. In the year 2014, the government had increased the income tax exemption limit from 1 lakh to 2.5 lakh. However, since then no major announcement has been made for taxpayers again during the last eight years.
- Some analysts believe that Finance Minister Nirmala Sitharaman can announce a big relief to the taxpayers. This relief includes increasing the basic exemption limit from 2.5 lakh to 3 lakh. It is also expected to increase to 3.5 lakh from the current 3 lakh for senior citizens.
- At the same time, it is possible to announce long distance semi-high speed trains this year to connect every corner of the country on the occasion of Amrit Mahotsav of Independence in the Rail Budget. Along with this, emphasis will be laid on electrification of Indian Railways. The year 2017 will be the sixth joint budget after the merger of the Railway Budget with the Union Budget.
- Apart from the introduction of new train services, plans for doubling and laying new lines can also be announced in the Rail Budget. The railway budget is likely to include promotion of LHB coaches, introduction of eco-friendly facilities etc.
- Finance Minister Nirmala Sitharaman said in the Economic Survey tabled in Parliament on Monday that projects will be taken up to keep transport future ready and help the railway system emerge as an engine of national growth. Under this, capital expenditure in railways will be developed rapidly in the next decade.
- Ahead of the budget session, Prime Minister Narendra Modi said on Monday that elections have their place in democracy and that process will continue, but the budget session of Parliament, which draws the blueprint for the whole year, is very important. Addressing reporters on the first day of the budget session, the Prime Minister called upon all MPs and political parties to make this session fruitful. He said, ‘The more fruitful we make this budget session with full commitment, the coming year will also become a big factor in taking us to new economic heights.’
- The first phase of the budget session of Parliament is proposed from January 31 to February 11. After this, there will be a holiday to consider the budgetary allocation of various departments. The second phase of the budget session will start from March 14, which will continue till April 8.