Credit Guarantee Trust for Micro and Small Enterprises will be revamped to facilitate additional credit of two lakh crore rupees. MSMEs : Emergency Credit Line Guarantee Scheme (ECLGS) will be extended up to March 2023 and its guarantee cover will be expanded by Rs 50,000 crore to total cover of five lakh crore rupees.Fiscal Management: Rs 51,971 crore has been budgeted in 2021-22 towards settling the liabilities of Air India.Amendments will be made in the Insolvency and Bankruptcy Code to facilitate cross border insolvency resolution. Legislative changes will also be brought in to promote agro-forestry and private forestry. Legislative proposals: The Special Economic Zones Act, 2005 will be replaced with a new legislation that will enable states to become partners in ‘Development of Enterprise and Service Hubs’, covering all existing and new industrial enclaves.The Reserve Bank of India Act, 1934 is being amended to enable RBI to issue its digital currency.Many customs exemptions are also being phased out. Changes in customs duty: Customs duties on over 500 items have been changed.Both these deadlines have been extended by one year. Certain types of start-ups have an option for tax holiday for three out of the first ten years if they incorporate by April 1, 2022. New companies and start-ups: New domestic companies engaged in manufacturing have an option to pay tax at 15% (without claiming any deductions) if they start manufacturing by March 31, 2023.Surcharge will be reduced from 12% to 7% for co-operatives whose total income is between one crore and ten crore rupees. Co-operatives: Alternate minimum tax for co-operatives will be reduced from 18.5% to 15%.They will have to pay 25% penalty on tax and interest due if it is filed in the year after the assessment year, and 50% penalty in the second year. ![]() Updating return of income: Taxpayers will be permitted to file an updated return of income within two years of the assessment year.Any loss incurred from such transfers cannot be set off against any other income or carried forward to subsequent years. Tax on virtual digital assets: Income from the transfer of cryptocurrencies and non-fungible tokens will be taxed at the rate of 30%.The surcharge on other LTCG is 25% if total income is between Rs 2 crore and Rs 5 crore, and 37% if it is above Rs 5 crore. Surcharge on Long Term Capital Gains (LTCG): Currently, the surcharge on LTCG on listed equities and equity mutual funds is capped at 15%.Income tax: There is no change in income tax rates for individuals and corporations.Ministry allocations: Among the top 13 ministries with the highest allocations, in 2022-23, the highest percentage increase in allocation is observed in the Ministry of Communications (93%), followed by the Ministry of Road Transport and Highways (52%), and the Ministry of Jal Shakti (25%).Extra Budgetary Resources (EBR) : After a number of years, the budget has not relied on EBR or loans from National Small Savings Fund.Interest expenditure at Rs 9,40,651 crore is estimated to be 43% of revenue receipts. Fiscal deficit in 2022-23 is targeted at 6.4% of GDP, lower than the revised estimate of 6.9% of GDP in 2021-22 (marginally higher than the budget estimate of 6.8% of GDP). ![]() Deficits: Revenue deficit in 2022-23 is targeted at 3.8% of GDP, which is lower than the revised estimate of 4.7% in 2021-22.GDP: The government has estimated a nominal GDP growth rate of 11.1% in 2022-23 (i.e., real growth plus inflation).In 2021-22, total receipts (other than borrowings) are estimated to be 10.2% higher than the budget estimates. Receipts: The receipts (other than borrowings) in 2022-23 are expected to be to Rs 22,83,713 crore, an increase of 4.8% over revised estimate of 2021-22. ![]() In 2021-22, total expenditure is estimated to be 8.2% higher than budget estimate.
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