Union Finance Minister Nirmala Sitharaman delivered her fourth Budget speech on February 1st, expressing sympathy for those affected by the COVID-19 pandemic. There was 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 type of relief in the event of a pandemic, however, there were astonishingly few changes to the personal income tax structure.
1. The RBI will begin issuing digital rupees in 2022-23, utilizing blockchain and other technologies.
2. The government will give taxpayers a one-time opportunity to correct errors in previously filed ITRs, with amended returns due within two years.
3. Bigger allocation for Indian industry in defense modernization funds, and military R&D funds opened for private firms.
4. The proceeds of digital asset transfers would be taxed at a rate of 30% by the government.
5. 75 Digital Banking units to be set up in 75 districts by scheduled commercial banks.
6. Customs duty on cut and polished diamonds, gems to be reduced to 5 pc.
7. Any income tax or surcharge that is not recognized as a business expense TDS of 1% on virtual asset transfers above a certain threshold; gifts will be taxed
8. Long-term capital gains are taxed at a 15% surcharge.
9. The tax deduction limit for employers, contributions to NPS accounts for state government employees has been raised to 14 per cent.
10. The Basic Optional Tax for Cooperative Societies will be reduced to 15%.
11. The proposal reduces the levy on cooperative societies to 7% for people with incomes ranging from one to ten crore rupees.
12. ECLGS has been extended until March 2023, with 60 lakh new jobs expected over the next five years.
13. Efforts by the federal and state governments result in job creation and entrepreneurship opportunities.
14. A digital ecosystem for crafting and earning a living will be created.
15. This will aim to educate, reskill, and reskill citizens via online learning.
16. API-based talent credentials, pay layers for finding relevant jobs, and opportunities.
17. The AICTE will lead the way in developing urban planning programs.
18. Plans to establish a digital university.
19. The administration intends to increase PM eVIDYA 12‚ One class, one TV channel‚ scheme to 200 Television channels.
20. ITIs will begin repositioning skilling classes.
21. In 2022, a telecom spectrum auction will be held in preparation for 5G deployment.
22. As part of the PLI project, a design-led production scheme for the 5G ecosystem will be developed to enable low-cost internet and mobile connectivity in rural and remote areas.
23. R&D and technological advancement will receive 5% of the USO Fund.
24. Contracts for laying optical fibre in towns will be awarded as part of the BharatNet PPP project in 2022-23.
25. An open infrastructure for a nationwide digital health ecosystem will be launched.
26. It will include computerised health care provider and institution registers, a unique health identity, and universal access to health care services.
27. In health, infrastructure, and education, 95 per cent of the 112 aspirational regions have made significant progress.
28. A National Telemental Health Plan will be developed to help people with mental illnesses.
29. During the next three years, 400 brand-new Vande Bharat trains will be manufactured.
30. KAWACH indigenous technology will be used to improve the safety and capacity of 2,000 kilometres of the rail network.