Home / Budget / No tax relief, 5G, 60 lakh jobs announcement: What is in Budget 2022 for you and me

Union Finance Minister Nirmala Sitharaman presented the budget for the financial year beginning 1 April – a budget that would have to stimulate economic growth amid the ongoing Covid-19 crisis.

Would there be tax relief for the middle class? How did the government plan to create jobs amid the pandemic? Let's find out.

No tax relief - FM Sitharaman proposes no change in income tax rates and slabs in her Budget for FY'23. The minister also did not raise standard deduction, which was widely anticipated in view of elevated inflation levels and impact of the pandemic on the middle class.

The standard deduction currently stands at 50,000.

The corporate tax rate too was kept at the same level. However, concessional rate of 15 per cent has been extended by one year for newly incorporated manufacturing units.

Tax deduction limit for state govt employees to NPS hiked - The finance minister today said the government proposes to increase tax deduction from 10% to 14% on contribution in NPS (National Pension System) by the state government to employees.

At present, only central government employees are eligible to claim tax benefit of 14% for the employer’s contribution to the NPS account of an employee. In case of private sector employees, the tax benefit is limited to 10%.

Creation of 60 lakh jobs - Presenting the Budget 2022, Finance Minister Sitharaman said the next target of the government is to create 60 lakh jobs. "PM Gati Shakti will pull forward the economy and will lead to more jobs and opportunities for the youth," she announced.

The FM said the Centre is focused on empowering the youth, women and the poor in the country.

"Production Linked Incentive (PLI) Scheme for achieving Aatmanirbhar Bharat has received an excellent response, with potential to create 60 lakh new jobs and additional production of 30 lakh crore during next Keycap digit five years," she added.

Import duty on diamonds, gemstones - Sitharaman has announced cutting import duty on cut and polished diamonds and gemstones to 5% while on sawn diamond to nil in order to boost the sector.

At present, import duty on cut and polished diamonds as well as gemstones is 7.5%.

Govt to tax crypto income - The government announced plans to start a digital currency and tax crypto assets, as the country keeps pace with the global move toward virtual financial instruments.

Income from the transfer of any virtual digital assets will be taxed at 30%, FM Sitharaman said in her budget speech today.

400 new Vande Bharat trains to be introduced - The Union Finance Minister has proposed to introduce 400 new Vande Bharat trains and said contracts for multi-modal parks at four locations will be awarded next fiscal.

She also said that a rationalised scheme to increase domestic oilseed production will be brought in to cut down imports.

Health - Sitharaman said a national tele-mental health program will be launched for mental health counselling. IIT Bangalore will provide tech support for the programme.

She also said an open platform for the National Digital Health Ecosystem will be rolled out.



Meghna Sen

Meghna Sen is a deputy chief content producer at Livemint where she tracks companies, news, markets. She has 5+ years of experience with print and online publications. Email: meghna.sen@htdigital.in
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