No change in Income Tax slabs, surcharge on cooperative societies cut to 7% from 12%

New Delhi: The Indian economy is in a position to face the challenges posed by the pandemic, Finance Minister Nirmala Sitharaman said on Tuesday while presenting her fourth straight budget.

The FM said the country's economic growth is expected at 9.2 per cent in the current financial year, on the back of a sharp rebound in the economy.

She also said virtuous cycle of investment is expected to revive on account of capex (capital expenditure) and crowd in private investment.

Finance Minister Nirmala Sitharaman on Tuesday said the Union Budget lays down the foundation to steer the economic developments for the next 25 years with holistic and future priorities.

In her Budget Speech in the Lok Sabha, the minister said the Union Budget for 2022-23 seeks to lay the foundation and give a blueprint to steer the economy over the Amrit Kaal of the next 25 years from India at 75 to India at 100. It continues to build on the vision drawn in the Budget of 2021-22.

"We are marking Azadi ka Amrit Mahotsav, and have entered into Amrit Kaal, the 25-year-long leadup to India@100," the minister said.

The fundamental tenets of the Budget include transparency of financial statement and fiscal position, and reflect the government's intent, strengths, and challenges, she said.

Sitharaman said the Budget continues to provide impetus for growth.

The Budget lays a parallel track of a blueprint for the Amrit Kaal, which is futuristic and inclusive, directly benefiting youth, women, farmers, the Scheduled Castes and the Scheduled Tribes.

It also stresses on big public investment for modern infrastructure, readying for India at 100.

PM GatiShakti

This, Sitharaman said, shall be guided by PM GatiShakti and be benefited by the synergy of multi-modal approach.

Besides PM GatiShakti, the other three priorities of the government will be 'inclusive development; productivity enhancement and investment, sunrise opportunities, energy transition, and climate action; and financing of investments".

"The overall, sharp rebound and recovery of the economy is reflective of our country's strong resilience. India's economic growth in the current year is estimated to be 9.2 per cent, the highest among all large economies," she said.

80 lakh houses

The FM announced allocation of whopping Rs 48,000 crore for completion of 80 lakh houses under the Pradhan Mantri Awas Yojana (PMAY), both rural and urban, during the next fiscal year.

One-time window to taxpayers to correct any discrepancy

Finance Minister Nirmala Sitharaman gave a one-time window to taxpayers to correct any discrepancy or omissions in their ITRs within two years of filing, subject to payment of taxes.

Besides, rationalising the surcharge regime, Sitharaman said, she proposes to cap the surcharge on long-term capital gains arising on transfer of any type of assets at 15 per cent. This step will give a boost to the startup community, she said.

Currently, the long-term capital gains on listed equity shares, units etc are liable to maximum surcharge of 15 per cent, while other long-term capital gains are subjected to a graded surcharge, which goes up to 37 per cent.

Customs duty

Customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic manufacturing of products like wearables and electronic smart meters.

Presenting the Union Budget 2022-23, Sitharaman said duty concessions are also being given on certain items to enable domestic manufacturing of high-growth electronic goods.

The finance minister noted that electronic manufacturing has been growing rapidly.

"Customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart meters," she added.
She said duty concessions are also being given to parts of transformer of mobile phone chargers, camera lens of mobile camera module and certain other items.

Sitharaman said with accelerated improvement of health infrastructure in the past two years, the country is in a strong position to withstand challenges posed by the coronavirus pandemic and its new variant Omicron.