Groww Logo
Home>Blog>Personal Finance>Budget 2022 Highlights: Key Takeaways

Budget 2022 Highlights: Key Takeaways

02 February 2022

This year’s budget (FY2022-23) appears to be growth-oriented with the Centre stepping on its capex spending. Having said that, there were minor announcements made for individuals too.

Theme of the budget

Budget 2022 had a growth-oriented undertone. The announcements were guided by these top four themes:

  • PM GatiShakti
  • Inclusive Development
  • Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition, and Climate Action
  • Financing of Investments

Key Takeaways

Mental Health: Mental health was given preference in this budget. In this budget there was a specific announcement for the National Tele Mental Health Programme for quality counselling. Additionally, the National Digital Health Ecosystem is expected to be rolled out in FY23.  

Digital banking units: For increased financial services access across all regions in the country, the budget plans to introduce 75 digital banking units in 75 districts. 

Digital currency: The RBI will be issuing a new digital currency, a Digital Rupee, by using blockchain technology. The RBI aims to issue a digital currency in the financial year starting April 1, 2022.

Read more on Groww: Union Budget 2022-23 Personal Finance: What Aam Aadmi Should Note

Updated income tax return: Keeping in mind that several tax payers faced issues and may have committed errors in their tax return forms, the government is proposing to allow taxpayers to file updated returns within 2 years from the end of the assessment year.  For example, we recently filed returns for the financial year 2020-21 in the assessment year 2021-22. The returns for FY21 can be corrected for errors till 2023-24.

Virtual asset: Any income from the transfer of virtual digital assets will be taxed at 30%. A TDS of 1% is also being proposed on the transfer of such virtual assets. Gifting of virtual assets will be taxed at the hands of the receiver.

Non-resident tax exemption: To promote IFSC, income of a non-resident from offshore derivative instruments, or over the counter derivatives issued by an offshore banking unit, income from royalty and interest on account of lease of ship and income received from portfolio management services in IFSC shall be exempt from tax. This is provided the income accrues or arises outside India. 

State Government employees tax deduction: Increase in the tax deduction limit from 10 per cent to 14 per cent on employer’s contribution to the NPS account of State Government employees. This is on par with the Central Government employees. 

Green bonds: As a part of the Government’s overall market borrowings in 2022-23, sovereign Green Bonds will be issued for mobilizing resources for sole purposes of green infrastructure. The proceeds will be deployed in public sector projects.

eVidya: With closure due to the outbreak of pandemic, access to quality education is important. For this purpose, the Government had launched eVidya, an online learning platform. In this budget, FM proposed to expand PM eVidya from 12 to 200 TV channels. This is likely to enable supplementary education in regional languages for classes 1st to 12th. Along similar lines, high-quality e-content in all spoken languages will be developed for delivery through the internet, mobile phones, TV and radio. This will be done with the help of digital Teachers

E-passports: For the convenience of Indians for their overseas travel, the Government plans to issue e-Passports. This will be done using embedded chips and futuristic technology and is expected to be rolled out in FY23. 

Digitisation of land records: Digitisation of land records was highlighted again in this budget as well. The FM stated that the States are encouraged to adopt Unique Land Parcel Identification Number to facilitate IT-based management of records. To unify the process of registration of deeds and documents, One-Nation, One-Registration software is promoted. 

Bond issues to facilitate credit: To reduce indirect cost for suppliers and work-contractors, the use of surety bonds as a substitute for bank guarantee will be made acceptable in Government procurements. Businesses such as gold imports may also find this useful. IRDAI, the insurance regulator, has given the framework for the issue of surety bonds by insurance companies. 

Incentives for start-ups: All eligible start-ups that were established before March 31, 2022 were being given a tax incentive for three consecutive years out of the 10 years from their incorporation. The government has extended the incorporation of eligible start-ups by one more year, up to March 31, 2023 so that more start-ups can avail of the tax incentive. 

Do you like this edition?
LEAVE A FEEDBACK
ⓒ 2016-2022 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 3.1.1
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  ICICI PRUDENTIAL |  HDFC |  NIPPON INDIA |  ADITYA BIRLA SUN LIFE |  SBI |  UTI |  FRANKLIN TEMPLETON |  KOTAK MAHINDRA |  IDFC |  DSP |  AXIS |  TATA |  L&T |  SUNDARAM |  PGIM |  INVESCO |  LIC |  JM FINANCIAL |  BARODA PIONEER |  CANARA ROBECO |  HSBC |  IDBI |  INDIABULLS |  MOTILAL OSWAL |  BNP PARIBAS |  MIRAE ASSET |  PRINCIPAL |  BOI AXA |  UNION KBC |  TAURUS |  EDELWEISS |  NAVI |  MAHINDRA |  QUANTUM |  PPFAS |  IIFL |  Quant |  SHRIRAM |  SAHARA |  ITI