February 1, 2022,New Delhi: India’s Finance Minister, Nirmala Sitharaman, picked up the newsheadlines as she went live with budget2022 in India. There is a buzz about the accurate insights related tobudget on social media platforms like Facebook and Twitter.

News about budget hit the channels as the honorable Finance minister started with the union budget live on Lok Sabha TV. She unveils important aspects in her 120 minutes speech that discusses various ways to strengthen the national economy, increase exemptions, and provide tax benefits.

After an inevitablesurvey over the individual pointers and listings of the budget, this budget blog 2022 is out here with allyou are eager to know.

Highlights of Union Budget 2022

Our finance minister represented the forecast on India’s budget that explains important initiatives that result in better integration of the global supply chain. Her plan aimed to reform India's CAPEX with a pre-determined and feasible fiscal reducing strategy.

Other trendinginclusions of this year’s budget are:

  • The finance minister re-arranged the tax structures by reducing thecorporate income tax to 25%. This would generate a promising 15% tax rate thatsupports the evolution of newer manufacturing firms.
  • Prime Minister added that the budget design was to uplift the poor andmiddle class to bring about an equilibrium in the society.
  • Indian economy is struggling with the post-pandemic effects consideringthat the minister is waiving certain tax breaks. This is a big relief for thesalaried class as they could end up saving some bucks in the end.
  • The emphasis of this budget focuses on augmenting the pandemic recoveryof the country and laying a better foundation for the educational system inIndia.
  • New rules state that employees are subject to many tax benefits. Thestandard deductions cannot restrict the money earned through WFH allowances.

Tax Revisions as per Budget Blog2022

Though there are afew tax rate reductions, those under a specific slab can avail only specificexemptions through the former tax scheme. There are 7 income levels in each taxslab, of which income till Rs.2.5 is exempted from taxation. Hence, thosemaking earnings till Rs. 5 lakhs have a minimal taxation amount to pay.

People in the slabof INR 5 lakhs- 7.5 lakhs need to pay 10% of their earnings as taxes. As theslab enhances to rs. 10 lakh each year, the tax rate shoots till 15%, and 20%taxation is applicable for individuals earning from Rs. 10 Lakh to Rs. 12.5Lakhs. Earners from rs. 12.5 lakh to Rs. 15 lakhs should pay 25% taxation ontheir earnings. Those crossing the annual income of more than Rs. 15 lakhs needto pay 30% taxation.

Any exemption asper Section 80C is not applicable in this framework. Few exemptions like homeloans, insurance, and other basic deductions are missing from the new taxsystem. There has been a 15% capping surcharge applicable on capital gains.Taxation is to be levied on receivers of gifts bought through cryptocurrency.The minimum taxation limit for co-operative societies gets reduced to 15%.

Revelations about Jobs in Budget

  • Extension of ECLGS till March 2023 proclaims over 60 lakh more jobs inthe next 5 years.
  • Central and state governments would bolster the entrepreneurialopportunities for the people.
  • Creating a better digital ecosystem attracts more work-from-home jobs torender livelihood.
  • Multiple payment layers and API-based credentials to search for moreopportunities and jobs.

Remarkable steps on Digital Currency

  • The government will launch a blockchain-based digital currency in 2022-23.
  • There might be launching a specific taxation scheme for virtual digital assets.
  • Complete accountability would be maintained for creating policies on virtual digital assets.

Housing and Urban Development Plans Unveiled

  • Allotment of Rs. 48,000 Crore for the PM Awas Yojana.
  • By 2022-23, over 80 lakh houses are subject to completion in both rural andurban areas.
  • Allocation of Rs.60,000 Crore to allocate sufficient tap water access toalmost 3.8 cr households.
  • Advanced by-laws for building and construction to be introduced soon.
  • Government plans to allow public transport even in the urban regions.

Important Facts to Know about Union Budget

  • Union budget is curated by a constructive approach and collectiveanalysis of finance ministry with other parliamentary ministries.
  • The railway budget was released separately until 2017 post which it was amalgamatedwith the union budget.
  • The average duration of the speech during budget lasts from almost 90minutes to 120 minutes.
  • The entire 2022 budget given by Nirmala Sitharaman lasted for 120minutes.

The budget 2022 was centric on offeringbasic facilities to the country's middle class, poor, and youth. Our PMintended to make youth self-reliant and release policies that enable them tounfold new success paths and avenues. This years union budget is ‘Progressive’and ‘People-Friendly’ as per the statement released by the finance minister.

Finance MinisterNirmala Sitharaman hinted that the budget forecasts an anticipated growth ofalmost 9.27% in the next year. Multiple modules of development triggering theeconomy’s growth include productivity enhancement, inclusive development,climate action, and the energy transition. She also clarified that the overallcapital expenditure in 2022- 23 was around Rs. 10.68 lakh crore, sums up to4.1% of the overall country’s GDP.

An interestingbudget highlight is an inclination towards digital currency and the use of suchchannels to increase the virtual outflow of money in the country. There hasbeen an allocation of Rs.5.25 lakh crore for the defense budget considering theexternal threats to the nation.

Concluding words

Though the budget in India released on February 1had some good signs for the people accommodating to various sectors, themiddle-class taxpayers get disappointed yet again. As there is no relief in thetax slab, they are in the lurch and not very satisfied with the calculativemove of the finance ministry in India.

On the other hand,there has been a significant change in digitalization, such as promotingvirtual transactions introduction of epassports with embedded chips in comingyears. Overall, the budget managed to create a balance. Yet, it had a majorextension towards advancements in health, telecom, technology, infra, and othersectors while negating the taxation benefits most people were eyeing at!