The Finance Bill 2022 was presented on February 1st, 2022 by Hon. Finance Minister Nirmala Sitharaman. Prime Minister Narendra Modi attested that the Union Budget 2022-23 is ‘people-friendly and progressive’ and is confident that it will usher in a new era of development.
The common man comprises a major portion of the 1.4 billion Indian citizens who are affected by the norms proposed in the Bill. Many were left disappointed though since the Bill did not provide any kind of financial aid for the average citizen drowning in debt due to the ongoing pandemic.
There are a lot of unfulfilled expectations from the Budget such as:
- Hike in 80C Limit
- Hike in Tax Exemption Limit under Section 80D
- Increase in financial benefits for homebuyers
- Tax savings for work-from-home staff
- Extension of LTA Cash Voucher Scheme, etc.
Hence, let us take a look at the significant sectors that the 2022 Budget would affect the daily life of commoners from April 1st, 2022:
This is a major one as everyone’s attention was on the rumoured income tax slabs deviations. However, there are no changes on the income tax slabs.
Taxpayers are also given a one-time window to correct any discrepancy in their ITR within 2 years from the end of the relevant assessment year.
Under the PM Awas Yojana, Rs. 48000 crores have been allotted for the development of 80 lakh houses.
Any income from the transfer of any virtual digital asset will be taxed at 30% and no exemptions or deductions are allowed on it. Additionally, any loss from the transfer of digital assets cannot be set off against other means of income.
Rs. 39.45 trillion will be allocated for building public infrastructure to drive financial growth in the coming fiscal year. It will include affordable housing projects, expressways, and solar equipment manufacturing.
National Pension Scheme Contribution
The tax deduction limit has been increased from 10% to 14% on the employer contribution towards the NPS account of the State Government employees.
New Employment Opportunities
60 lakh new job opportunities would be available in 14 different sectors under the Productivity Linked Incentive (PLI) Scheme.
A new portal called Digital Ecosystem for Skilling and Livelihood (DESH) Stack E-portal will be launched to help upskill the employees via online training.
National Digital Health Ecosystem will be launched as an open platform for boosting the health sector.
National Tele Mental Health Programme will be launched for helping citizens combat mental health issues with the help of counselling and care services.
The differently-abled citizens would be allowed to receive annuity and lump sum amounts from their insurance scheme during the lifetime of their parents or legal guardians when the parents or guardians attain 60 years of age.
To summarize, it seems that the average Indian is not fully satisfied with the Union Budget 2022-23.
You will get an idea for this disappointment from the following chart:
|Things to get costlier||Things to get cheaper|
|Imitation Jewellery||Clothes & phone chargers|
|Umbrellas||Gemstones & diamonds|
|Earphones, headphones & loudspeakers||Camera lens for mobile phones|
|Solar modules & cells||Frozen squids & mussels|
|Smart meters||Cocoa beans & asafoetida|
|X-ray machines||Acetic acid & methyl alcohol|
|Parts of electronic toys||Petroleum product chemicals|
Sources – India Today, Economic Times, Wion News