Finance Minister Nirmala Sitharaman presented the union budget yesterday in the parliament for the upcoming fiscal year, 2022-2023. In her shortest budget speech, Sitharaman said, “This budget seeks to lay the foundation and give a blueprint to steer the economy over the next 25 years – from India at 75 to India at 100.” This marked the 10th annual budget of Prime Minister Narendra Modi-led central government and the fourth by Sitharaman as in-charge of the Finance Ministry. The new budget has garnered both praise and criticism.

Here are all the key takeaways from Budget 2022.

1. No change to Income Tax slabs was announced in the Budget speech. However, the tax deduction limit for state government employees on the employer's contribution to the National Pension System will be increased to 14% from 10%. Taxpayers have now been allowed to correct errors and file updated Income Tax returns within two years of the concerned assessment year.

2. Under Section 80DD of the income tax,  if a parent or guardian of a PwD person takes a savings life insurance scheme for their PwD son or daughter, then the parent will get Tax deduction only if the payment of the annuity or lump sum amount is made to PwD after the death of the parent. However, there are times when the PwD needs the payment of the annuity or lump sum amount during the lifetime of the parent. Therefore, in order to remove this genuine hardship, the FM proposed to allow the PwD nominee to get payment of the annuity or lump sum amount but only after the parent is above the age of 60 and the parent will get Tax deduction as well. 

3. A digital currency will be introduced by the [Reserve Bank of India (RBI) in FY 2022-2023. Sitharaman also announced a taxation scheme for digital assets. Under the scheme, a 30% tax will be levied on the sale or acquisition of virtual assets such as cryptocurrency.

4. Customs duty on several imported items has been hiked. As a result, some items that are expected to become more expensive include imitation jewellery, single or multiple loudspeakers, headphones, earphones, solar cells, X-ray machines, and parts of electronic toys.

5. Parts of mobile phones are expected to cost lesser as the government has decided to give duty concessions to makers of mobile phone chargers and certain other items. 

6.  Cut or polished diamonds and gemstones will soon become cheaper as customs duty on such products has been reduced to 5%. Simply sawn diamonds will have zero customs duty.

7. 5G mobile services will be started in India by private companies in 2022-23. The 5g Launched service will be first launched in major Indian cities like Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, and Ahmedabad.

Tags

• Finance
• Budget
• 2022
• highlights
• explained
• mean

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