There were a slew of policies aimed at stimulating GDP in the face of high and growing inflation, as well as continued Covid uncertainty.
In a year marked by calls from numerous sources for some relief in the event of a pandemic, however, there were astonishingly few changes to the personal income tax structure.
Nirmala Sitharaman, who presented Budget 2022-23, assessed India’s total expenditure at Rs 39.45 lakh crore and predicted a fiscal deficit of 6.4 percent of GDP in FY23.
The budget targets for FY 2022-23 are designed to help India achieve its goals:
Prioritize progress and well-being for everybody.
Technology-enabled development, energy transformation, and climate action are all being promoted.
The highlights for 2022-23 are as follows:
From Rs 5.54 lakh crore to Rs 7.50 lakh crore, the CAPEX target has grown by 35.4 percent while the effective CAPEX for FY23 is expected to be Rs 10.7 lakh crore.
Micro-all-inclusive welfare, digital economy and fintech, technology-enabled development, energy transformation, and climate action are all intended to supplement macro-growth.
Expenditure, deficit, and other crucial figures
In 2022/23, the budget deficit is anticipated to be 6.4 per cent of GDP.
The budget deficit for 2021/22 has been revised to 6.9% of GDP.
In addition to their standard borrowing, states can take out 50-year interest-free loans.
The scheme for financial assistance to states for capital expenditure outlay will be Rs 1 lakh crore for the fiscal year 2022/23.
Initiatives from the previous budget were adequately funded in this budget.
The next financial year’s disinvestment profits receipts are expected to be Rs 65,000, down from the current year’s mobilization of Rs 78,000.
The government guarantees a consistent and predictable tax system.
The government will provide a one-time opportunity to correct errors in previously filed ITRs, with new returns due within two years.
Any income tax or surcharge is not deductible as a business expense.
TDS of 1% on transfers of virtual assets above a certain threshold and gifts will be taxed
Long-term capital gains taxation is restricted to 15%.
The government would tax digital acquisition transactions at a rate of 30%.
Besides acquisition costs, no deductions are authorized for calculating income.
Losses cannot be deducted from further sources of income.
Gifts of cryptocurrency will be taxed on the receiver’s side.
A new provision has been enacted that allows taxpayers to file an amended return.
An updated return can be filed within two years of the end of the relevant assessment year.
The Alternative Minimum Tax will be reduced to 15% for cooperative societies.
The proposal reduces the surcharge to 7% for cooperative societies with an annual income of between Rs 1 crore and Rs 10 crore.
Employer contributions to state government employees’ NPS accounts are now tax-deductible at a rate of 14 percent.
A blockchain-based digital rupee will be introduced in 2022-23.
To establish a tax structure for virtual digital assets.
Other sources of income cannot mitigate losses resulting from the sale of virtual digital assets.
Virtual digital investment income will be taxed at a rate of 30%.
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