Budget 2022: Highlights from the Budget speech

The Finance Minister stated changes in her budget 2022. 

1. The introduction of New policy on Project Imports and Capital Goods.
2. The Moderate tariff of 7.5% introduced and Concessional rate/Exemptions to project imports, power generation, metro, railway etc. is being withdrawn.
3. The 350 exemptions to be phased out which includes agricultural produce, chemicals, fabrics, medical devices and drugs.
4. There will be removal of exemptions on products which can be manufactured in India under Make in India initiative.
5. The ADD and CVD on certain steel products are being revoked.
6. There will be export incentives on furniture fittings, packaging boxes, zippers, leather items etc.
7. The duty is reduced on certain inputs required for shrimp aquaculture to encourage exports.  
8. The SEZ law is being replaced with a new law.
9. The National Bank for Financing Infrastructure and Development (NaBFID) and National Asset Reconstruction Company have commenced their activities.
10. The Finance Minister said that the Contracts for implementation of Multimodal Logistics Parks at four locations through PPP mode will be awarded in 2022-23.
11. To help local businesses & supply chains ‘One Station-One Product’ concept will be popularized. 
12. As a part of Atmanirbhar Bharat, 2,000 km of network will be brought under Kavach, the indigenous world-class technology for safety and capacity augmentation in 2022-23.
13. As a preferred ecologically sustainable alternative to conventional roads in difficult hilly areas, National Ropeways Development Programme will be taken up on PPP mode. The aim is to improve connectivity and convenience for commuters, besides promoting tourism.
14. Most importantly, the budget stated that the procurement of wheat in Rabi 2021-22 and the estimated procurement of paddy in Kharif 2021-22 will cover 1208 lakh metric tonnes of wheat and paddy from 163 lakh farmers, and ` 2.37 lakh crore direct payment of MSP value to their accounts.
15. The budget added that the year 2023 has been announced as the International Year of Millets. Support will be provided for post-harvest value addition, enhancing domestic consumption, and for branding millet products nationally and internationally.
16. Digitalisation in the field of  agriculture i.e. use of kisan drones for crop assessment, digitization of land records, spraying of insecticides, and nutrients.
17. For delivery of digital and hi-tech services to farmers with involvement of public sector research and extension institutions along with private agri-tech players and stakeholders of agri-value chain, a scheme in PPP mode will be launched. 
18. The finance minister said that the Emergency Credit Line Guarantee Scheme (ECLGS) has provided much-needed additional credit to more than 130 lakh MSMEs. This has helped them mitigate the adverse impact of the pandemic. The hospitality and related services, especially those by micro and small enterprises, are yet to regain their pre-pandemic level of business. Considering these aspects, the ECLGS will be extended up to March 2023 and its guarantee cover will be expanded by ` 50,000 crore to total cover of ` 5 lakh crore, with the additional amount being earmarked exclusively for the hospitality and related enterprises. 
19. She added that taking forward the digital banking agenda, and to mark 75 years of our independence, the Union has proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks.
20. The issuance of e-Passports using embedded chip and futuristic technology will be rolled out in 2022-23.
21. The budget highlighted that an International Arbitration Centre will be set up in the GIFT City for timely settlement of disputes under international jurisprudence.
22. The Income Tax Department has established a robust framework of reporting of taxpayers’ transactions. In this context, some taxpayers may realize that they have committed omissions or mistakes in correctly estimating their income for tax payment. a new provision is introduced, permitting taxpayers to file an Updated Return on payment of additional tax. This updated return can be filed within two years from the end of the relevant assessment year.  
23. The budget allowed the payment of annuity and lump sum amount to the differently abled dependent during the lifetime of parents/guardians, i.e., on parents/ guardians attaining the age of sixty years.   
24. Last date extended for commencement of manufacturing or production under section 115BAB by one year i.e. from 31st March, 2023 to 31st March, 2024. 
25. Any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent. 
26. The Surcharge of the AOP’s is capped at 15 per cent.
27. Any surcharge or cess on income and profits is not allowable as business expenditure.
28. No set off of any loss shall be allowed against undisclosed income detected during search and survey operations. 

To read the Memo click here

To read the finance Bill Click here 

To read the Budget speech click here