Like every year, Finance Minister announced the Budget 2022 on February 1. No changes were introduced in the income tax slabs, 30% tax was announced on cryptocurrency transactions, and focus on implementing technology in agriculture sector.

On Tuesday, Finance Minister Nirmala Sitharaman took to the Parliament and announced the nation’s budget for 2022. This was the current NaMo government’s 10th budget and the second paperless budget in India’s history. The FM stated that India’s economic growth in the Financial Year 2022 will be 9.2%, the highest among every other large economics. The Finance Minister also hinted on the ‘Amrit Kal’ idea which will serve as the blueprint for the next 25 years.

The Facts of the Matter

The Indian Finance Minister Nirmala Sitharaman presented the 2022 Union Budget on Tuesday. It was the fourth Union Budget of the second Narendra Modi term. The finance minister announced a host of new measures for several sectors and a significant chunk of her announcement was focused on capital expenditure (Capex) the country will put in to meet its vision of being a trillion-dollar economy.

Interestingly enough, there were no significant changes when it came to personal income tax slabs, a demand that was being raised since the past few quarters. Moreover, the taxation of digital assets has also created frenzy around the subject.


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India’s Growth Highest Among Major Economies

The finance minister announced that the capex (capital expenditure) target of India has expanded by a whopping 35.4%. This means that the earlier capex was somewhere at Rs. 5.54 lakh crores and it has expanded to Rs. 7.50 lakh crores. In the second paperless budget, Sitharaman announced that India’s growth among all major economies across the world is highest. The country, as per the finance minister, is in a stronger position to withstand challenges.

No Income Tax Slabs Change, One Time Window for ITR Filing

In the taxation section of the budget, no major changes were announced by the finance minister when it came to income tax. Interestingly, to correct omissions in Income Tax Returns, the government will be providing a one-time window. Further, the updated returns can be filed within two years.


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30% Tax on Cryptocurrency

As expected, the finance minister had more than a few words to speak about cryptocurrency and digital assets. As the world evolves on the back of blockchain technology, the government seems to have embraced digital assets such as cryptocurrency as a legal tender. However, it will tax all income generated by digital asset transfers by 30%. Further, cryptocurrencies which will be given as gift will also be taxed at the receiver’s end.

India to Announce Blockchain Based Rupee in 2022-23

After months of speculation around the subject, the Finance Minister announced the launch of the first Indian blockchain-based digital rupee. The digital rupee will start 2022-23. In her speech, Sitharaman also added that lossess from the sale of digital assets wouldn’t be allowed to be offset against any other income.


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Steps to Empower Farmers and Agri Sector

The current PM Modi government withdrew the 3 contentious farmer’s laws after months of protests by the farmers of the nation. To appease the farmers and the stake holders, the finance minister echoed the current government’s priority towards agriculture in her speech.

In the agriculture sector, the finance minister announced that it will put Rs. 2.37 lakh crores towards the procurement of wheat and paddy under a Minimum Selling Price. Further, the finance minister also announced that Indian Railways will be developing products for small farmers and farming related MSMEs.

To empower farmers with technology, the government will also be promoting ‘Kisan Drones’ which will be used for crop assessment, insecticide spraying, and land record digitizations. Moreover, the government aims to provide chemical-free natural farming in India to further boost the agricultural productivity of farmers and boost their income.

 

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