The budget 2022 shall be presented by Hon'ble Finance Minister Smt. Nirmala Sitharaman on February 1st 2022 at 11 AM IST in paperless format like last year. The duration of the budget shall vary from 90 minutes to 120 minutes.
A Union budget app was launched for hassle-free access to the budget documents for the Members of Parliament and the General Public This app is bilingual (i.e Hindi and English) available on ios and android platforms.
What are the expectations of Budget 2022?
The Indian economy is recovering from the effects of Pandemic, high inflation and unstable environment. Various Industry players are forwarding their demands to the Finance Minister.
Here is what can be expected out of this Budget:
Main Objective
Is likely to be focus on a road map of recovery for the economy through job creation, demand generation and driving economic growth through infra development, FDIs
Banking Sector
Banking sector is seeking more income tax relaxation on home loans.The banking industry is considered as the backbone of any economy.
Relaxation of tax deducted at source (TDS)/tax collected at source (TCS) provisions:The Finance Act, 2020 introduced TCS provisions on sale of goods whereas the Finance Act, 2021 introduced TDS provisions on purchase of goods. The term 'goods' is not defined under the income-tax law and based on definition provided in other laws, it may include securities and derivatives. While there is clarity regarding listed securities being outside the purview of TDS/TCS provisions, there is no clarity in respect of other securities. A suitable clarification on all securities (including derivatives) from the ambit of TDS/TCS provisions relating to purchase/sale of goods would be applauded by the banking industry.
Health Sector
The health sector is expecting more specific allotments in this year's budget to mitigate COVID-19 and help in the growth of the telemedicine sector.
"The telemedicine segment is growing at a rapid pace and in the future, we are expecting more technological innovations to take place in the industry therefore, the budget should be well allocated to the healthcare sector to initiate new innovations to be prepared for the fight with pandemics like covid-19 in the future." says Vikram Thaploo, CEO of Apollo Telehealth
Capital Markets
The Founder of Zerodha Nikhil Kamath in his various tweets Attaching market data charts, Kamath explained that post-Budget event, the expectations of market volatility is seen in only 8 out of the last 22 years, where the markets have moved lesser than 4 percent plus or minus in the post-budget month.
Travel Industry
Travel Agents Association of India (TAAI) has sought a 'One India One Tourism' approach in the upcoming Union Budget 2022-23 to revive the coronavirus-ravaged domestic travel, tourism and hospitality industry. It also wants the government to consider e-visa fees waiver for all tourist visas for 2022-23 to support inbound revival export status for tourism export earnings.
Consumer Durables & FMCG
Consumer durables like air conditioners, refrigerators and washing machines have become essential household items, even more so in this pandemic when consumers are grappling with home isolation, work from home, and inconsistent availability of domestic help. "Commodity price inflation however has led to significant price hikes, even as consumer purchase sentiments are muted due to the economic uncertainty induced by the pandemic. We are expecting this budget to rationalize GST for these products." says Business Head and Executive Vice President Kamal Nandi
MSME Sector
The MSME sector is expecting hassle-free credit availability to industry, reduced costs of doing business and one demand in unison that is the extension of ECLGS. Emergency Credit Line Guarantee Scheme (ECLGS) for another year till 31st March 2023 and extension of the reduced rate of performance security at 3 percent for one more year till 31st December 2022.
Auto Industry
Reduction In GST On EV Components and Two Wheelers are highly expected in this budget. India's up-and-coming electric vehicle industry has quite the checklist for the forthcoming Union Budget 2022-23 as the automotive industry accounts for nearly half of India's manufacturing GDP and nearly 8 percent of the overall GDP. The FAME II subsidy is one of the most talked-about policies of the upcoming Union Budget. Electric Vehicle manufacturers, as well as charging service providers, are hoping that the government extends the scheme beyond 2023.
"The budget should encourage the collaboration of EV players and divert more funds towards the government's clean fuel vision. To facilitate the mass adoption of electric vehicles in India, we need a seamless EV infrastructure that is much more capable and connected, sustainable and has a more intelligent mobility landscape," says Simple Energy MD and CEO Suhas Rajkumar
Individual Tax Payers
Income taxpayers have a huge list of expectations from the Union Budget 2022 as no relief was announced for taxpayers in the last year's Budget. For Individual taxation, taxpayers expect an enhancement in the basic income tax exemption limit of Rs 2.5 lakh. An upward revision in the top income slab of Rs 10 lakh and above, and an increase in the existing section 80C deduction limit of Rs 1.5 lakh. Removal New tax regime. Bringing back deductions u/s. 80L.
The Start-up economy
Start-ups have urged the government to relax tax burden on the sector. Framing policies and support mechanisms should be aimed at domestic capital participation, favorable investment climate in Tier-2 and Tier-3 cities and incentives for setting up incubators in every state.
Crypto Industry
Expecting Union Budget to bring in regulatory clarity and help standardize best practices, address misconceptions around this emerging asset class. An environment that will encourage more Indians to start their crypto investing journey and promote financial inclusion in line with the government's vision.
The budget 2022 has a lot of expectations from the Government for smooth economic operations with less tax burden and compliances. To sum up "Budget is not just a collection of numbers but an expression of values and aspirations."
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