Key Budget Highlights 2022
- Required spectrum for 5G roll out in FY2023 is a boost for the Telecom sector and will increase exposure for the telecom sector
- Focus on Fintech and digital Banking will be a boost for the growing startups in the fin tech Sector
- Digital Currency has been the focus of the budget with the introduction of Digital Rupee using Block chain technology. This will help reduce physical and financial efforts required for money management.
- Existing tax benefits for start-ups, which were offered exemption of taxes for 3 consecutive years, to be extended by 1 more year. This will develop the start-up ecosystem that is seeing a major increase in the country.
- IBC to speed up Resolution process – winding up of companies to be reduced to 6 months from the current two years tenure will make the entire wind-up process faster and efficient.
- Reduction in Defence Imports will increase the exposure in the defence sector. This will give a boost to companies manufacturing defence products, and its ancillaries.
- 9.2% GDP growth is impressive for the Economy, as compared to the past few years.
- Focus has been given to the MSME segment by extending the Emergency Credit line Guarantee Scheme till March 2023
- With Higher Fiscal deficit – Growth and employment numbers will be important to watch out for.
- SEZ to be covered by New legislation that will create partnerships between SEZ and states to create development HUBs.
- Robust Allocation of 7.5 lakh crores( up 35.4%(YOY)) as capital expenditure for FY 23 will give a boost to commercial vehicle sales domestically.
- Production Linked Incentive Schemes in 14 sectors will generate 6 million jobs and will help in boosting the economy overall.
- Priority given to agriculture, rural areas, welfare of all sectors followed by a focus on infrastructure.
- Virtual digital Assets will be taxed at 30% slab is a positive step as it legitimises crypto and hints at an optimistic sentiment towards further acceptance of Crypto currencies.
- New provision has been incorporated to file updated income tax returns within 2 years of relevant assessment year is a relief to the taxpayers wanting to make amendments and modifications in return submitted.
- Tax deduction limit for State Govt employees to NPS raised from 10 -14% as a result of which investment in NPS Schemes are expected to go up.
- No change on income tax slabs.
- Keeping the scape constraint in urban areas in mind to set up charging stations, a battery swapping policy to be implemented and interoperability standards to be formulated
- · Income Tax relief schemes to be announced for differently- abled persons
- Gross GST collection for Jan 2022 reaches a record figure of Rs. 1,41 trillion.
