For the record, the tax slabs under the old regime & the new regime shall remain unchanged. The following are cPROFIT's highlights of Budget 2022- 

Surety Insurance:

General insurers to launch surety insurance in India as per the guidelines of IRDA . Surety insurance aims to protect parties from financial loss arising out of payment defaults. Simply put, if an entity or an individual fails to honour debt obligation due to default, insurance companies will underwrite such a financial loss.

Tax relief to persons with disability:

The parent or guardian of a differently abled person can take an insurance scheme for such a person. The present law provides for deduction to the parent or guardian only if the lump sum payment or annuity is available to the differently abled person on the death of the subscriber i.e. parent or guardian.

Surcharge reduction:

Long-term capital gains on listed equity shares, units etc. are liable to maximum surcharge of 15 % as per Budget, while the other long term capital gains are subjected to a graded surcharge which goes up to 37%.

Parity between employees of State and Central Government:

 At present, the Central Government contributes 14 % of the salary of its employees to the National Pension System (NPS) Tier-I U/S 80 CCC (D) for Central government employees and 10% for state government employees. Now it's proposed to keep at par with the same 14% for both. This will reduce their income tax burden to a large extent.

Incentives for Start-ups :

Eligible start-ups established before 31.3.2022 had been provided a tax incentive for three consecutive years out of ten years from incorporation. In view of the Covid pandemic, it is proposed to extend the period of incorporation of the eligible start-up by one more year, that is, up to 31.03.2023 for providing such tax incentive.

A concessional tax regime of 15 % tax was levied for newly incorporated domestic manufacturing companies and the last date for the commencement of manufacturing or production under section 115 BAB  gets extended by one year i.e. from 31st March, 2023 to 31st March, 2024.

Scheme for taxation of virtual digital assets: like Cryptos

It’s proposed that Gains made from transfer of crypto will be taxed at flat 30%. In case of losses, it cannot be set off against any gains. In addition, crypto will be subject to 1% TDS.

Exclusive Digital Rupee:

Budget proposed to introduce Digital Rupee through RBI, using blockchain and other technologies in  2022-23.

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 green infrastructure. The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy.

Battery swapping Policy:

The private sector will be encouraged to develop sustainable and innovative business models for ‘Battery or Energy as a Service’. This will improve efficiency in the EV eco system.

e-Passport:

The issuance of e-Passports using embedded chip and futuristic technology will be rolled out in 2022-23 to enhance convenience for the citizens in their overseas travel.

Anytime – Anywhere Post Office Savings :

In 2022, 100 % of 1.5 lakh post offices will come on the core banking system enabling financial inclusion and access to accounts through 11 net banking, mobile banking, ATMs, and also provide online transfer of funds between post office accounts and bank accounts.

For Millet users:

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.

New jobs creation:

Plan is to create 60 lakh new jobs, and an additional production of Rs.30 lakh crore during next 5 years.

Digital Banking:

To mark 75 years of our independence, it is proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks.

Other main Points to be noted:

  • GDP growth for FY 22 expected to be 9.2%, the highest for any large economy.
  • While India’s expenditure for FY 2023 is Rs.39.45 lakh crore, the country will receive income of Rs. 22.84 lakh crore through receipt of taxes. This indicates that India has pegged its fiscal deficit target at 6.9% to meet its expenditure . Revised Fiscal Deficit of 6.9% of GDP in FY22 announced as against 6.8% in Budget estimates, Fiscal deficit is aimed at at 6.4% in FY23
  • Capex will increase to 7.5 lakh crore, an increase of 37%
  • Taxpayers can file updated returns within 2 years of filing the original returns
  • In line with corporate India, the taxation structure for co-operative societies has been reduced to 15%
  • Government has reduced corporate surcharge from 15% to 7%
  • Additional allocation of Rs 19,500 crore for PLI in solar PV module manufacturing
  • PM Gati-shakti masterplan has scope to enhance Multimodal communication through 7 engines, 2000 km of rail network to be brought under KAVACH & Highway network to grow by 25,000 km in FY23.
  • ECLGS (Emergency Credit Line Guarantee Scheme) to MSMES to be extended upto March 2023, guaranteed cover extended by another Rs 50,000 crore
  • Rs 48,000 crore allocated to housing projects under PM Housing Scheme for FY23, Rs 1,500 crore allocated for development of the Northeast in FY23 & Desh stack e-portal to be launched to promote Digital infra
  • Duty on unpolished diamonds to be reduced to 5%
  • Customs duty on steel scrap extended by a year
  • Rs 2 trillion outlay for MSMEs, Additional loans for 13 mn MSMEs.