Budget FY22 ends uncertainty over future of cryptocurrency in India

 FY 2022 budget primarily focuses on digital Currency. Union Budget for FY22-23 seeks to give a blueprint of the economy over the Amrit Kaal of the next 25 years.

Minister said we are celebrating Azadi ka Amrit Mahotsav and have entered into Amrit Kaal for next 25 Years

With an estimated growth of 9.2%, this Year see the major Highlights of Budget FY22

Highlights:-

1. - surcharge is reduced on cooperative societies from the present 12 % to 7%,  but the reduction in surcharge is for those having a total income of more than Rs 1 crore to up to 10 crores.
2. - Alternative Minimum Tax (AMT) for cooperative societies from current 18.5% to 15% at par with private companies.
3. - Income tax for start-ups under 80-IAC of Income Tax Act, 1961 (IT Act) has been extended by 1 year. 
4.   Accordingly, start-ups incorporated till March 31, 2023, will be eligible to avail of income tax holiday for 3  consecutive years out of 10 years from incorporation.
5. - Commercial Bank will set up 75 Digital Banking Units in 75 districts.
6. - Budget proposes to setup C-PACE to facilitate Voluntary Exit of companies from 2 years to 6 Months
7. - Minister Proposes to setup International Centre in GIFT City for settlement of disputes  
8. - Foreign Universities will be allowed to offer courses in Technology and Management in GIFT City
9. - Digital rupee/CBDC(Central Bank Digital Currency) using blockchain  to be launched by RBI in FY23-23 
10. - Income from virtual digital assets(Cryptocurrency) will be taxed at 30% and gifting of digital Crypto also be taxable in the hand of receiver.
11. - Section 115BBD providing concessional Tax of 15% on dividend received from foreign companies has been proposed to be abolished from FY23-24.
12. - Amount received for expense occur from the treatment   of COVID for self or family from an employer or otherwise or sum received by the family 
13.   member from any person's death  up to 10 Lakhs is not taxable
14. - Employee contribution to National Pension Scheme (NPS) Tier-I account is increased from 10% to 14%.
15. - Budget proposes to promote the use of “Kisan Drones” for crop assessment using Drone Survey.
16. - Sitaram said the AVGC sector will provide opportunities for Youth and promote digital skill Education Academy to produce new AVGC Skilled Talent.
17. - DESH-Stack e-portal to boost skill development, Minister said that a digital University will be developed in different Language to provide World-class   Quality education across the country.
18. - Guardian of differently-abled can get a tax deduction of annuity and lumpsum after attaining the age of  60 years
19. - Data Centers will now be eligible for grants of funds from banking institutions under infra sector allocation which will facilitate credit availability for digital infrastructure.
20. - Section 29 of the CGST Act is amended for Cancellation of GSTIN by an officer.GST number will get cancelled if the taxable person fails to 
21.   file an annual return for more than 3 months beyond the 30 April of it respective Year.
22. - GSTR-5 by Non-resident  taxable person is revised from 20th of next month to 13th of Next Months
23. - Exemption on certain parts of Phones and charging devices is provided to encourage domestic manufacturing.
24. - Wearables and hearable devices will also gets cheaper as Government is calibrating rates to provide graded rate material
25. - Custom duty on petroleum refining and chemical like methanol, acetic acid is also being reduced.
26. - Govt. announced exemptions for input for exports of handicraft and leather garments.
27. - Custom Duty on Polished diamond also to be reduced to 5%.
28. - The budget allocates 1 Lakh crore interest-Free Loan for 50 Years in Pradhan Mantri GatiShakti
29. - Budget focusses on improving Women and Child health by upgrading 2 Lakh  Anganwadis.
30. - PM eVIDYA promoting One class, one TV channel’ programme of will be expanded from 12 to 200 TV Channels in their regional language.
31. - Long Term Capital Gain on the sale of Unlisted shares is 20% for residents and 10% for non-resident Investors.
32. - 19500 crore for PLI for solar PV Modules for integrating polysilicon to Solar PV to achieve a goal of 280 gigawatts of Solar Capacity by 2030
33. - Minister said that Bank Credit growth increased to 7.5-8% in FY22
34. - Budget claimed that auction of 5G spectrum would also take place in FY22
35. - Optical fibre project for the enhancement of fibre wire network will be done in PPP model in FY22.
36. - Village will also have equal access to the digital revolution in skills and Technological advancement as urban 
37.   the government will provide many linked schemes for promoting the digital revolution.
38. - Minister said that Govt will issue e-Passports with futuristic technology in FY22-23 that will contain an electronic chip
39.   of memory storage of 64 kilobytes with 30 visit storage and also photograph and fingerprint will be stored in Chip to avoid forgery 
40. - Various programmers will be launched by the government to improve the mental health of People to overcome the effect of the Pandemic.
41. - New rail product in form of 'One Station-one Product', 400 next-gen Vande Bharat trains and 100 Gati Shakti terminals in the Next 3 Years.
42. - The Ken-Betwa linking project aims to create transfer water from the Ken to the Betwa river with a 2 km long tunnel.

Income tax rates and slabs under both the old and new tax Scheme.

Income tax slabs and Rate of Interest for Senior citizens.

Income tax slabs and Rate of Ineterst for above 80 Years Senior Citizen

A cess at rate of 4 % and surcharge is levied if total income exceeds  INR 50 Lakhs

Budget Allocation 

Planned expenditure FY23