Highlights of the Union Budget 2023-24 – PDF Download, Important Points

The Union Budget 2023-24 was presented by the Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman on February 1^st 2023. Focusing mainly on the agriculture and education sectors, the 2023 budget also offered provisions for green growth and inclusive development of all parts of society. The Union Budget 2023-24 also gave a broad idea of India’s economy and achievements during COVID-19. It also proposed new allotments for almost every sector to promote growth and job creation. In the following article, we will look into some of the highlights of the Union Budget for the financial year 2023-24.

Union Budget 2022-23 Highlights

India’s Fiscal Estimations

• The fiscal deficit in the financial year 2023-2024 is estimated at 5.9% of the GDP.
• India’s growth is estimated to be among the highest in major economies at 7%.
• The estimated total expenditure in 2023-24 is Rs. 45,03,097 crore.
• Total receipts in the financial year 2022-23, excluding borrowings, are estimated at Rs. 41,87,232 crores.
• As per the budget, the Central Government’s capital expenditure in 2023-24 has been estimated at Rs. 13,70,949 crores.

Direct and Indirect Taxes

• Income generated above 15 lakhs per annum would be taxed at 30% under the revised tax slab structure.
• Income generated up to Rs. 7 lakhs would not be taxed.
• The limit for tax exemption upon the retirement of non-government salaried employees has been increased to 25 lakhs.

• The budget proposed a cap deduction from capital gains on investment in a residential house at 10 crores.
• Under the incentives for start-ups, the government has extended by one year the time of incorporation for qualifying start-ups to claim tax benefits.
• The minimum TDS threshold of Rs. 10,000 has been eliminated to clarify taxability relating to online gaming.
• Under the new tax regime, a reduction in the TDS rate to 20 percent on the taxable portion of EPF withdrawal in non-PAN cases has been proposed.
• New co-operatives that start manufacturing activities before the year ends shall benefit from a lower tax rate of 15 percent.
• The budget proposed a greater limit of Rs 2 lakh per member for cash deposits and cash loans for Primary Agricultural Co-operative Societies and Primary Co-operative Agriculture and Rural Development Banks.
• A larger ceiling of Rs 3 crore is being offered to cooperative societies for TDS on cash withdrawals.
• No excise duty would be charged on blended compressed natural gas.
• No customs duty would be charged on the import of capital goods and machinery required to manufacture lithium-ion cells for batteries used in electric vehicles.
• Goods excluding textiles and agriculture would face a reduction in the number of basic customs duty rates.
• Toys, bicycles, automobiles, and naphtha would be charged a slightly higher custom duty than the previous year.
• Relief in customs duty on importing certain parts of mobile phones such as camera lenses would be provided.  
• The basic customs duty on electric kitchen chimneys has been increased from 7.5 to 15 percent.
• The custom duty on heat coils has been reduced from 20 percent to 15 percent.
• The basic customs duty rate on compounded rubber has been increased from 10 to 25 percent.
• The chemical and metal sectors would have reduced customs rates and simplified tariff structures.
• A reduction in the basic customs duty on seeds used in manufacturing lab-grown diamonds have been proposed.
• National Calamity Contingent Duty (NCCD) on particular cigarettes has been increased by around 16%.

Budget Allocation

• As per the budget, the effective capital expenditure is budgeted at Rs. 13.7 lakh crore, which will be 4.5 percent of GDP.
• Capital investment outlay is raised by 33 percent to Rs 10 lakh crores, which will be 3.3 percent of GDP.
• The budget of India’s fiscal deficit for the year 2022-23 has been estimated

at 6.4% of the total GDP.

Agriculture

• Focusing on animal husbandry, dairy, and fisheries, the agriculture loan objective would be enhanced to Rs. 20 lakh crores.
• The budget made allotments for the agricultural digital public infrastructure to be developed as an open source, open standard, and interoperable public good. This would enable six inclusive, farmer-centric solutions through crop planning and health information services, increased access to agricultural inputs, loans, and insurance, assistance with crop estimating, market intelligence, and support for the growth of the agri-tech industry and start-ups.
• The government set up The Agriculture Accelerator Fund to encourage young rural entrepreneurs to launch agribusinesses. The Fund will seek to provide innovative and cost-effective solutions to problems encountered by farmers. In addition, it will introduce cutting-edge technologies that will alter agricultural methods and boost production and profitability.
• The budget also made room for the Atmanirbhar Clean Plant Program, which would increase disease-free, high-quality planting material for high-value horticulture crops at the cost of 2,200 crores.

Education

• The government formulated the National Education Policy, which focuses on developing skills to facilitate job creation at scale.
• The government also made provisions to set up one hundred labs to develop applications using 5G services in engineering institutions.  The labs will focus on applications such as smart classrooms, precision agriculture, intelligent transport systems, and health care.
• The budget proposed the establishment of one hundred and fifty-seven new nursing colleges. Centers for developing AI will be set up in the top educational institutes.

Healthcare

• The Union Budget 2023 plans to allocate Rs 88,956 crore to health expenditures, a 2.71 percent increase from the previous year.
• The government has allocated funds with the mission to eliminate sickle cell anemia by the year 2047.

MSMEs

• An Entity DigiLocker will be available to MSMEs, corporations, and nonprofit organizations. This will be to securely keep and share documents online, as needed, with various authorities, regulators, banks, and other business entities.
• The government would provide an additional collateral-free guaranteed credit of Rs 2 lakh crore and reduce the cost of the credit by about 1 percent.

Start-Ups

• A National Data Governance Policy will be published to promote innovation and research by start-ups and academics. This will provide access to data that has been anonymized.
• From seven to ten years after incorporation, start-ups will be able to carry forward losses upon a change in shareholding under the revised budget.

Infrastructure Railways, Roadways, Logistics

• Under the new budget, the 50-year interest-free loan to state governments for one more year would be extended, with a significantly increased expenditure of Rs 1.3 lakh crores.
• The Railways have been allocated 2.20 lakh in capital expenditures.
• Fifty more airports, heliports, water aerodromes, and advanced landing grounds will be established.
• 10,000 crores will be provided to The Urban Infrastructure Development Fund (UIDF).
• One hundred crucial transport infrastructure projects have been planned for last and first-mile connections for ports, coal, steel, fertilizer, and food grains sectors. They will be prioritized with an investment of 75,000 crores.
• Coastal shipping will be pushed as the most cost-effective and energy-efficient mode of transport.

Green Growth and Energy 

• A Green Credit Programme will be established under the Environment (Protection) Act to encourage behavioral change. This will incentivize environmentally sustainable and responsible behavior on the part of businesses, individuals, and local organizations and assist mobilize additional resources for such initiatives.
• In the fiscal year 2023-2024, several programs for green fuel, green energy, and green farming will be commenced. These green growth initiatives reduce the carbon intensity of the economy and create substantial green employment prospects.
• Under the GOBARdhan scheme, 500 new “waste to wealth” factories will be developed. These would consist of 200 compressed biogas plants, 75 of which will be located in urban areas, and 300 community or cluster-based plants with a total investment of Rs. 10,000 crores. In due time, a 5% CBG requirement will be implemented for all companies marketing natural and biogas. Appropriate financial support will be provided for the collection and distribution of bio-mass and bio-manure.
• The proposed Amrit Dharohar program will be implemented over the next three years to encourage the optimal use of wetlands, increase bio-diversity, carbon stock, ecotourism opportunities, and income generation for local communities, the government will promote the unique conservation values of wetlands.
• 10,000 Bio-Input Resource Centres will be established, creating a network of micro-fertilizer and pesticide production at the national level.
• The ‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’ (MISHTI) will be implemented for mangroves planted along the coastline and on saltpan lands.
• The recently formed National Green Hydrogen Mission, with a budget of Rs 19,700 crores, would facilitate the transition to a low carbon intensity economy and reduce reliance on fossil fuel imports.
• This budget allocates Rs. 35,000 crores to the Ministry of Petroleum & Natural Gas for priority capital investments towards energy transition, net-zero targets, and energy security.
• The government also plans to strengthen the Inter-state transmission system for evacuation and grid integration of 13 GW of renewable energy from Ladakh. A budget of Rs. 20,700 crores, including Rs. 8,300 crores in federal funding, is allocated to this cause.

Basic Amenities and Housing

• Allocation for the PMAY-G housing scheme for the rural poor has been increased by 12% to Rs. 54,487. The allocation for the urban has been reduced to Rs. 25,103 crores from previous years’ Rs. 28708 crores.
• Under the Ujjwala housing scheme, the new houses under PMAY-G will have free cooking gas connections and universal electrification. 
• Under the PM Awas Yojana two housing schemes have been allocated Rs. 79,590.

Other allocations

• As per the budget, Rs 44.6 crores will be used as insurance cover for those who apply under the PM Suraksha Bima.
• The government would be awarding a cash transfer of Rs. 2.2 lakh crore under PM Kisan Samman Nidhi to 11.4 crore farmers. This will help provide income support to farmers and promote agricultural development.
• Rs. 2516 crore has been set aside for the computerization of 63,000 credit societies.
• Funds have been allocated to scrap old vehicles and ambulances of the state Central Government in efforts to be more environmentally conscious.
• Phase 3 of the E-Courts project would be implemented at the cost of 7,000 crores to improve the administration of justice.
• The budget for the year 2023 has announced a new saving scheme for women called the Mahila Samman Savings Certificate. This scheme focuses on the upliftment of women and helps them become more financially independent.   
• In attempts to promote a healthier and cleaner lifestyle, The Swachh Bharat Mission will install 11.7 million household toilets.
• To battle the ongoing fight against Covid, the government plans to give 220 crores Covid vaccinations to pensioners
• To provide financial inclusivity and expand financial access to economically weaker regions of society, Rs. 47.8 crores will be allocated to PM Jan Dhan’s bank accounts.

This year’s Union Budget focused on providing aid and development opportunities to strengthen macroeconomic growth while promoting renewable resources. It aims to improve all sectors of the economy while also guiding new entrepreneurs to launch start-ups for the nation’s technological advancement.

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Highlights of the Union Budget 2022-23

The Union Budget 2022-23 was presented by the Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman on February 1^st, 2022. Focusing mainly on the technology and infrastructure sectors, the 2022 budget also offered provisions for health and education for the upliftment of the common man.

The Union Budget 2022-23 also gave a broad idea of India’s GDP and stability during the time of COVID-19. It also proposed new allotments for almost every sector to cultivate growth in the sub-continent. In the following article, we will be looking into some of the highlights of the Union Budget for the financial year 2022-23.

Union Budget 2022-23 Highlights

MSMEs

• Rs. 6000 cr would be provided through the Raising and Accelerating MSME Performance program launched by the government.
• The government would be interlinking several portals such as ASEEM, Udyam, e-ashram, and NCS.
• Under the Emergency Credit Line Guarantee Scheme, additional credit would be awarded to 13 lakh MSMEs.
• Under the Emergency Credit Line Guarantee Scheme (ECLGS), the base cover has been expanded by Rs.5000 cr to a total cover of Rs.5 lakh cr. Also, the ECLGS has been extended up till March 2023.
• Under the Credit Guarantee Trust for Micro and Small Enterprises, the budget allocated Rs.2 lakh cr of additional credit for micro and small enterprises.

India’s Fiscal Estimations

• The fiscal deficit in the financial year 2022-23 is estimated at 6.4% of the GDP.
• India’s growth is estimated among the highest in the world with 9.2%.
• The estimated total expenditure in 2022-23 is Rs.39.45 lakh cr.
• Total receipts in the financial year 2023, excluding borrowings, are estimated at Rs.22.84 lakh cr.
• 60 lakh new jobs opportunities to be created in 14 sectors under the Productivity Linked Incentive Scheme.
• As per the budget, the Central Government’s capital expenditure in 2022-23 has been estimated at Rs.10.68 lakh cr.

Direct and Indirect Taxes

• New provision for filing an updated return on payment of additional tax. The return can be filed within two years from the end of the relevant assessment year.
• Income generated from a virtual digital asset transfer would be taxed at 30%.
• Income generated on receiving a gift of a virtual digital asset would also be taxed on the recipient’s part.
• The budget did not propose any new changes in the prevailing personal income tax rates.
• For State Government employees, the tax deduction limit has been increased from 10% to 14% on the employer’s contribution to the NPS account.
• Under the incentives for start-ups, the government has extended the period of incorporation by a year for availing tax benefits by eligible start-ups.
• Surcharge or cess on income, profits would not be considered business expenditure under the health and education cess head.
• The alternate minimum tax paid by cooperatives has been lowered to 15% from the previous 18.5%.
• Surcharge on long-term capital gains on transfer of any type of assets is capped at 15%.
• The budget proposed more than 350 exemption entries to be phased out gradually, including selected agricultural produce, medical devices, chemicals, fabrics, etc.
• Annuity and lump-sum payment on insurance to be allowed to differently-abled people, who are dependent during the lifetime of their parents attaining the age of 60 years.
• Sectors such as chemicals, metals, and textiles would have simplified customs rates and tariff structures.
• Mobile phone charger transformers would also have customs duty concessions and other products such as modules of mobile camera lenses.
• Imitation jewelry import would face an added customs duty of Rs.400 per kilogram. Duty exemptions are also provided to the steel scrap with an extended year for the betterment of the MSME secondary steel producers.
• Umbrellas would face an increased customs duty to 20%.
• No customs duty would be charged on simply sawn diamonds.
• There is a 5% cut in the customs duty on cut and polished diamonds.
• For the betterment of the domestic manufacturing of wearable devices, hearable devices, and electronic smart meters, customs duty rates would be regulated for a graded rate structure.
• For the upliftment of fuel blending, the budget has proposed additional excise duty on unblended fuel of Rs.2 per liter, starting from October 1^st, 2022.

Budget Allocation 

• As per the budget, the total capital expenditure would be increased by 35.4%, which would be increased from the previous Rs.4.54 lakh cr to Rs.7.50 lakh cr this financial year.
• The budget revised India’s fiscal deficit for the year 2022-23 has been estimated at 6.9% of the total GDP.
• 50-year interest-free loans of Rs.1 lakh cr would be awarded to the States for assistance in the funding of investments related to PM Gati Shakti.

Agriculture

• The budget made allotments to promote funds for the purpose of blended finance for sunrise opportunities. These may include agri-tech, climate action, etc. this fund would be generated through NABARD, which would reach financial start-ups working towards agriculture and rural enterprises. Farmers can easily seek help from these start-ups and gather tech learnings from FPOs.
• The government would take considerate steps to promote chemical-free farming in India.
• Kisan Drones would be used to promote crop assessment, land record digitization, and insecticide spraying.
• The government would help in launching the delivery of high-tech services to farmers.
• The Minimum Support Price (MSP) for farmers would be directly transferred into their bank accounts.

Education

• The budget proposed the establishment of a digital university meant for online education. It would mainly focus on Information, Communication and Technology with the help of a hub and spoke model.
• The government would be setting up 2 lakh Anganwadis on an upgraded scale for the better health of the children.
• The PM eVIDYA program, One Class, One TV Channel, would be further expanded from 12 to 200 TV channels. This measure would be benefiting States in providing substitute classes to students of classes 1 to 12, speaking regional languages.
• As per the new guidelines of the New Economic Policy, a large part of the GDP would support promoting education. Around 6% of GDP would be used for educational purposes. This step has been taken to be in tune with the changing times and education patterns.
• Courses relating to different skills would be offered to students by selected IITs in all states.

Start-Ups

• Start-ups would be facilitated with defence R&Ds.
• Drones and their usage is to be promoted with the help of ‘drone shakti,’ working in conjunction with start-ups.

Digital Banking

• For timely bill payments and maximum reduction of failures, the government would be launching an online billing system that all the ministries would use.
• The budget estimated the growth of credit by Rs.5.4 lakh cr.

Infrastructure, Railways, Roadways, Waterways, Logistics

• The next three years would see the development of 400 Vande Bharat higher efficiency trains.
• In the financial year 2022-23, 4 multi-modal national parks would be given contracts.
• The PM Gatishakti master plan for expressways would be started in the next financial year.

Basic Amenities and Housing

• Planned for the year 2022-23, around 80 lakh households would be recognized as part of the affordable housing scheme. The government would be employing Rs.60000 cr for the provision of drinkable tap water for 3.8 cr households.
• The government would be enabling the Ken-Betwa link at Rs.44605 cr for the purpose of providing drinking water, solar power, and hydropower to 65 lakh people, as well as irrigation to 9.05 lakh hectares.

Other Allocations

• Under the Prime Minister’s Development Initiative for North-East Region, the budget allocated Rs.1500 cr for the betterment of livelihood activities for women and the youth.
• As per the budget, the Special Economic Zones Act is set to be replaced with legislation that would work with the States in partnership with the Development of Enterprise and Service Hubs.
• For the promotion of electronic mobility in urban settings, the budget has been allocated for a battery swapping policy which would see the setting up of charging stations in various places.
• Under the Production Linked Incentive scheme, the government would launch a design-led manufacturing scheme for building a strong ecosystem for 5G.
• On the technological front, the government would be releasing e-Passports with
• the futuristic embedded chip technology.
• For the fast wind-up of companies, the government would be establishing the Centre for Processing Accelerated Corporate Exit (C-PACE).
• The government would be awarding infrastructure status to energy storage systems and data centers.

This year’s Union Budget focused more on providing aid and development opportunities for the promotion of micro-economic level growth. It seeks to uplift all the sectors of the economy as well as offers guidance to new entrepreneurs employing start-ups for the technological advancement of the nation.

Budget 2022 PDFs

Budget at a Glance – PDF
Deficit Statistics – PDF
Transfer of Resources to States and Union Territories with Legislature – PDF
Budget Profile – PDF
Receipts – PDF
Expenditure – PDF
Outlay on Major Schemes – PDF

Statement I – Consolidated Fund of India

Revenue Account – Receipts – PDF
Revenue Account – Disbursements – PDF
Capital Account – Receipts – PDF
Capital Account – Disbursements – PDF
Statement IA – Disbursements ‘Charged’ on the Consolidated Fund of India – PDF
Statement II – Contingency Fund of India – Net – PDF

Statement III – Public Account of India

Receipts – PDF
Disbursements – PDF
Receipts & Expenditure of Union Territories without Legislature – PDF
Finance Bill – PDF
Budget Highlights (Key Features) – PDF
Memorandum – PDF

Receipt Budget

Introductory Note – PDF

PART-A RECEIPTS

Abstract of Receipts – PDF

Summary of Estimates of Tax, Non-Tax Revenue and Capital Receipts

Tax Revenue – PDF
Non-Tax Revenue – PDF
Capital Receipts – PDF

Annexures

1. Trends in Receipts – PDF
2. Analysis of Tax and Non-Tax Revenue Receipts included in Annexure 1 – PDF
3. Reconciliation between estimates of Receipts shown in Annual Financial Statement and Receipts Budget – PDF
4. Statement showing State-wise Distribution of Net Proceeds of Union Taxes and Duties for BE 2020-2021 – PDF
   4A. Statement showing State-wise Distribution of Net Proceeds of Union Taxes and Duties for RE 2019-2020 – PDF
   4B. Statement showing State-wise Distribution of Net Proceeds of Union Taxes and Duties for Actual 2018-2019 – PDF
5. Tax Revenues raised but not realised (Principal Taxes) – PDF
6. Arrears of Non-Tax Revenue – PDF
7. Revenue impact of Tax Incentive under the Central Tax System: Financial Years 2018-19 and 2019-20 – PDF
8. Sources and Application of National Small Savings Fund as on 31st March, 2020 – PDF

PART-B ASSET AND LIABILITY STATEMENTS

Debt position of the Government of India – PDF

Expenditure Budget/Profile

Expenditure Profile – PDF
Expenditure Budget – PDF
Demands for Grants of Central Government – PDF

Customs Notifications

Explanatory Notes – PDF
D.O. Letter from JS(TRU-I) – PDF
Output Outcome Framework for Schemes 2020-2021 – PDF

Pre Union Budget 2022-23 – News

FADA Demands GST Rates to Come Down to 18%: Budget 2022

On Monday, the industry body stated that the FADA has sought a GST reduction on 18% to spur demand on two-wheelers. The FADA represents over 15,000 automobile dealers with 26,500 dealerships. The FADA noted that the two-wheelers are not a luxury item but a necessity.

The Federation of Automobile Dealers Association also urged for a uniform 5% GST rate for all vehicles. The industry body said that the FADA believes that reduction in GST rates and growth in demand will increase tax collections. It will prove to be revenue positive and effective in the overall economy. The reduction in GST will result in a shift of industry from unorganized to organized segments.  

Currently, charging rates of the GST are:

1. 12 and 18 percent for the used cars
2. 12 percent for the cars under 4,000 mm
3. 18 percent for the vehicles above 4,000 mm

With the reduction in corporate tax for private limited companies with up to Rs 400 crore turnover, the FADA demands the same benefits for the auto dealership community. FADA also demanded ‘a Depreciation Scheme’ for FY 2022-23.

Updated Date: 26-01-2022

Highlights of the Union Budget 2021-22

The Union Budget for the financial year 2021-22 was introduced by the Hon’ble Finance Minister of India, Smt. Nirmala Sitharaman on February 1^st, 2021. The new budget set the guidelines for the upcoming financial year and highlighted seven flagbearers for the nation’s economy.

The Finance Minister began by stating the issues and the difficulties faced by our nation’s economy as the repercussions of the COVID-19 pandemic and the objectives of the Pradhan Mantri Garib Kalyan Yojana to combat such hurdles. FM also highlighted the availability of two vaccines against COVID-19 and announced the release of two more in the near future.

The flagbearers of Indian economy 2021-22

Under the Union Budget presented in the parliament, the finance minister stated seven components as the backbone for reviving the dwindling economy of our nation. These include:

• Health and Wellbeing
• Physical and Financial Capital
• Infrastructure
• Inclusive development for Aspirational India
• Reinvigorating Human Capital
• Innovation and R&D
• Minimum Government Maximum Governance

The major goal of the budget is to focus on the development of these components as a strategy for economic spikes and recovering the lost finances of the past.

Union Budget 2021-22 at a glance:

The major announcements made by the Finance Minister under this union budget are mentioned below:

• Health and Wellbeing: The FM announced an increase in the spending with an expense of Rs.64 thousand crores that shall be spread over 6 years as part of a new scheme partnered with the National Health Mission. This has been done to provide aid to the urban and rural healthcare facilities.
• Jal Jeevan Mission: The Finance Minister also declared a new scheme as Jal Jeevan Mission that possessed Rs.2.87 lakh crores as an outlay. The new mission is targeted to sustain and improve the water supply in urban areas and local bodies as well as ensure proper supply to all the tap connections.
• Urban Swachh Bharat 2.0: The Finance Minister also announced Rs.1.41 lakh crores to be given for Urban Swachh Bharat 2.0 to be used over 5 years.
• Physical capital: The Finance Minister reinstated Rs.1.47 lakh crores for 5 years to fulfill the improvement of wastewater treatment and management of water pollution due to plastic wastes.
• Scrapping Policy: One of the innovative policies introduced under the Union Budget 2021 was the scrapping policy that has the objective of reducing vehicular pollution.
• Finance Minister also stated that around Rs.35000 crore shall be allotted for the production and distribution of COVID-19 vaccines.
• Infrastructure: Under the current budget an amount of Rs.1.97 lakh crores has been announced oriented towards manufacture on a global scale and also to grow employment opportunities for the youth. The budget also integrated the development of 7 high-end textile parks across the country over the next 3 years.
• Financial Capital: For boosting the financial capital of the country the Finance Minister announced the establishment of a Financial Institution and has declared Rs.5 crores as development amount. The Minister also announced an amount of Rs.2 lakh crore as state capital expenditure.
• The total capital expenditure for the financial year 2021-22 has been stated to be Rs.5.54 lakh crore and the Year-on-Year growth rate has been estimated at around 34.5% by the finance minister.
• Union Budget also announced the allowance for National Highways for the following states: a) Kerala: RS.65,000 crores, b) Tamil Nadu: Rs.1.03 lakh crores, and c) West Bengal: Rs.25,000 crores
• Inclusive development of Aspirational India: Under this pillar of the Union Budget, the Finance Minister announced a reform in the agricultural sector allowing a 1.5 times greater MSP than the last budget. The agricultural credit has also been increased now to Rs.16.5 crore.

Union Budget and its economic reforms for 2021:

Under the new Union Budget for the financial year 2021-22, the healthcare sector has been considered as a top-tier priority. The sector has been provided with an expense of Rs.64,180 crore as part of the Pradhan Mantri Swasth Bharat Yojana. This allowance is aimed to be spread over the next six years.

To increase the productivity and efficiency of the health and hospitality sector and to support the pillar of Healthcare and Wellbeing of the nation, the Finance Minister has allotted Rs.2,23,846 crore and this outlay will increase at the rate of 137% on a Year-on-Year basis. The institutions such as NCDC and hospitals across the country that has been hit by the worse of the pandemic shall bear some relief under the budget allowance.

The FDI limits have also been increased to 74% from the previous 49% in the insurance sector.

Union Budget 2021-22: Tax Proposals

The Union Budget was not all-too-happy for the salaried individuals or the working professionals as the government didn’t present any evident tax benefits or changes in the corporate tax.

Direct Tax Proposals:

• The Finance Minister announced in what comes as a significant move that the limit of the tax audit has been increased to Rs.10 crore under Section 44AB.
• The budget declared that Senior Citizens whose only source of income is a pension or interest income shall be exempted from taxation. Under the revised Sec 194P, the banks will deduct tax for senior citizens aged 75 years or above.
• There has also been a reduction in time for tax evasions for IT proceedings where the limit has been set at three years.
• Under the budget, a new Dispute Resolution Committee has also been established that shall be in-charge to resolve any tax evasion disputes under Sec 245MA and those with a total income above Rs.50 Lakh can approach this committee for disputed income.
• Finance Minister also announced a faceless appeal in front of ITAT or the tribunal center where a transparent and jurisdiction-free dispute appeal can be made by the taxpayers.
• The budget held good news for startups because their tax holiday has now been extended by one year (March 2022).
• The budget also entails a provision of pre-filling for returns, TDS, salary.
• An additional tax shall now be applied on the dividend income for the financial year
• The Finance Minister stated that the PF contribution of the employee shall not be allowed for taxation deduction in case it has not been deposited by his/her employer.
• For Section 43CA, the amendment remains and the stamp duty value will be at the rate of 120%
• The Sec 44ADA is now applied only to the residents, partnership firm or HUF
• The Finance Minister has also extended the deduction under Section 80EEA until 31^st March 2022.

Indirect Tax Proposals:

• Finance Minister has revised the custom duties for various commodities such as Copper scrap- 2.5%, Excise duty on petrol and diesel, Solar inverters- 20%, Solar lanterns- 15%

These custom duties shall be applicable from February 2^nd, 2021.

• The budget has also announced an NCCD on tariff items amounting to around 25%. This shall be applicable from January 1^st, 2022.
• AIDC has been imposed on diesel and petrol amounting to Rs.4/liter and Rs.2.5/liter respectively.
• The Finance Minister also informed that the customs duty on cotton, alcohol, silks, etc shall be increased.
• Under the new budget, there will be no exemption of leather as it is indigenously produced.
• Turant Customs: The new budget also introduced the Turant Customs service that will be aimed at providing a faster, paperless, and faceless custom procedure
• Several provisions were also introduced for the CGST Act for Sec 16 to enabling the taxpayers’ input tax credit claim, Sec 50 for providing interest on cash liability, and Sec 35 and 44 were amended for enabling the filing of income tax returns on a self-certification basis.

Highlights of the Union Budget 2021-2022 FAQs:

Budget 2021 PDFs

Last Year: Highlights of the Union Budget 2020-21

The union budget means different things to different people.

To the man in the street it means a new price and tax regime and to the woman in the kitchen it means finding new ways of balancing the home budget.

It all adds up to going round in circles trying to make the ends meet for most citizens.

The budget which the honorable finance minister has presented for the year 2020, with the aim of boosting income and increasing the purchasing power of individuals initially got a thumbs down from the stock market as the indices tanked but later bounced back strongly recouping the losses and cheering the general sentiment.

The following are the highlights of the budget that, according to the government, have been structured around three prominent themes –Aspirational India, Economic Development for all and caring society.

Tax Proposals

1) For starters, the finance minister has removed more than seventy deductions that provided relief to income taxpayers.

2) With the dividend distribution tax (DDT) scrapped you will now be required to pay income tax as per your individual tax slab.

3) With the new income tax regime that has been introduced, you will pay lower income tax if you forego income tax deductions.

The following proposals will bring cheer to most tax payers:

i) For taxable income up to Rs. 5 lakh tax – Nil tax

ii) For taxable income between Rs5 lakh to Rs7.5 lakh Income tax rate stands reduced from 20% to 10%.

iii) For taxable income from Rs7.5 lakh to Rs10 lakh the tax rate has been reduced from 20% to 15%.

iv) For taxable income between Rs10 lakh to Rs12.5 lakh the applicable tax rate will be 20% as against the earlier 30% to 20%.

v) For taxable income between Rs12.5 lakh to Rs15 lakh, the rate will now be 25% down from 30%.

vi) For taxable income above Rs15 lakh income tax has been retained at 30%.

• Tax on cooperative societies has been revised downward from 30% to 22% surcharge and cess.
• Vivaad se vishvas scheme, a scheme to be launched to settle direct tax disputes has been proposed. Meanwhile, the government will waive interest and penalty for those who wish to pay the disputed amount till 31 March.
• The government has extended a new corporate tax regime for new manufacturing plants to new power generation companies with a view to boost power generation capacity. The companies will pay only 15 % tax under the new corporate tax regime.
• The registration of charity institutions is proposed to be made fully electronic. Pre-filled IT return form to claim exemption easily.
• A new taxpayer charter is to be instituted to end tax harassment.

Aspirational India

Agriculture, Irrigation and Rural Development

Allocation of Rs 2.8 lakh crore for the agriculture sector has been made in the budget

• Pradhan Mantri Kisan Urja Suraksha Utthan Mahabhiyan is to be extended under which 20 lakh farmers would be allocated funds for stand-alone solar pumps and additional 15 lakh for grid connected pumps.
• Indian Railways and Ministry of Civil Aviation is to launch ‘Kisan Rail’ and ‘Krishi Udaan’ schemes respectively for a seamless national cold supply chain for perishables.
• It has been proposed to raise fishery exports to Rs1 lakh crore by 2024-25.

Wellness, water and sanitation

The budget has allocated Rs 69,000 crore for the healthcare sector.

• More than 20,000 empanelled hospitals under PM Jan Arogya Yojana to be set up.
• Jan Aushadhi Kendra Scheme proposed to be expanded to all districts by 2024.
• The budget provides for allocation of Rs 12,300 crore for Swachh Bharat this financial year.

Education sector

• Budget has allocated Rs99,300 crore for the education sector in 2020-21 and around Rs3,000 crore for skill development.
• Full-fledged online degree level education programs from top 100, NIRF ranking institutes to benefit underprivileged students.
• Finance Minister has proposed IND SAT exam for students of Asia and Africa to promote ‘study in India’ program.

Economic Development

Infrastructure

• This union budget allocates Rs  1.7 lakh crore for the infrastructure sector.
• Roads: Accelerated development of highways
• Railways: 150 passenger trains through PPP mode. Additional Tejas type trains for tourist destinations.
• Airways: 100 more airports to be developed under UDAAN
• Large solar power capacity for Indian Railways planned
• A suburban rail project for Bengaluru planned at a cost of Rs18,600 crore
• Under the public-private partnership mode the budget provides for five new smart cities.

New Economy

A national mission for Quantum Technologies and applications proposed with an outlay of Rs 8000 crore.

Banking and financial sector

• Government plans to launch debt ETF aimed at boosting the debt market.
• Deduction of Rs1.5 lakh for affordable housing announced earlier extended by one more year. Projects under affordable housing will get a tax holiday for one more year, but they need to get clearance by March 2021.
• For the security of fixed deposits, the budget has increased deposit insurance cover in banks from Rs 1 Lakh to Rs 5 Lakhs per depositor. The deposit insurance would apply even for deposits in multiple banks, i.e. Rs 5 Lakhs maximum insurance.
• Finance ministry is considering stake sale in LIC through public offering i.e. Initial Public Offering.

Manufacturing sector

• New schemes to encourage the manufacture of mobile phones, electronic equipment and semiconductor packaging being planned
• Private sector to be encouraged to build Data Centre Parks in the country

Caring Society

Women & Child, Social Welfare

• More than 6 lakh anagan wadi workers equipped with smartphones
• Taskforce proposed for recommendations on lowering MMR and improving nutrition levels. Nutrition-related programmes outlay proposed Rs 35600 crore.

Culture and Tourism

• Tourism promotion outlay proposed at Rs2500 crore
• Indian Institute of Heritage and conservation proposed
• Tribal museum to be set up in Ranchi
• Maritime museum planned at Lothal

Environment & Climate Change

• The Coalition for Disaster Resilient Infrastructure was launched in September 2019
• Encouragement to states implementing plans for cleaner air in cities above 1 million population

Conclusion

The budget aims to implement the vision of the government articulated as ‘Sabka Saath, Sab ka vikas’, (Development of all with the cooperation of all). With India emerging as the fifth largest economy in the world, the new thrust of the budget on development of all is a welcome shift in approach.