The Finance Minister said that India’s economic growth in the current year is estimated to be 9.2 per cent, the highest among all large economies….reports Asian Lite News
Presenting the Union Budget, Finance Minister Nirmala Sitharaman on Tuesday said that overall sharp rebound and recovery of the economy is reflective of India’s strong resilience.
“Overall sharp rebound and recovery of the economy are reflective of India’s strong resilience,” Sitharaman said while addressing the Parliament today.
FM Sitharaman began her presentation of Budget 2022 by expressing empathy with those who were affected by the adverse health and economic effects of the COVID-19 pandemic.
The Finance Minister said that India’s economic growth in the current year is estimated to be 9.2 per cent, the highest among all large economies.
“During Amrit Kaal, our government aims to achieve the vision for India@100 set out by the Prime Minister in his Independence Day Address,” she said.
Sitharaman on Tuesday began the presentation of the Union Budget 2022-23 by expressing empathy to those who died due to COVID-19.
“I want to take a moment to express my empathy for those who had to bear adverse health and economic effects of the pandemic,” the Union Minister said while presenting her fourth Budget in the Parliament.
Before the presentation, a Union Cabinet meeting was held which approved the Budget 2022-23.
Earlier today, Sitharaman met President Ram Nath Kovind ahead of the Budget presentation. She was accompanied by Ministers of State for Finance Pankaj Chaudhary, Bhagwat Karad and other officials from the Ministry.
In an attempt to go green, the Union Budget for 2022-2023 was presented in a paperless format. Sitharaman read out the Budget at the Parliament through a tab, instead of the traditional ‘bahi khata’.
On Monday, she tabled this year’s Economic Survey, centred around the theme of “Agile approach”, which forecasted India’s economy to grow by 9.2 per cent during Financial Year 2021-22 and by 8-8.5 per cent in fiscal 2023 beginning 1 April.
The budget session of Parliament began on Monday with the address by President Ram Nath Kovind to both Houses in the Central Hall.
The first part of the Union Budget Session of Parliament will be held from January 31 to February 11 and the second part of the Budget Session will take place from March 14 to April 8. (ANI)
Union Budget is expected to focus on employment generation, increase in limits for basic tax exemption, standard deduction, medical expenses, rationalisation of tax rates and certain social security investments, reports Asian Lite News
The Union Budget is expected to focus on employment generation, increase in limits for basic tax exemption, standard deduction, medical expenses, rationalisation of tax rates and certain social security investments.
Currently, Section 16(1A) of the IT Act provides for a standard deduction of Rs 50,000 from the salary income of a taxpayer. This deduction was enhanced from Rs 40,000 to 50,000 by the Finance Act 2019 and has not been increased since then.
However, considering the rising inflation and cost of living, there is a need to increase such standard deduction for the salaried personnel from Rs 50,000 to Rs 60,000 in case there is no increase in the basic exemption limit, said Suresh Surana, Founder – RSM India.
Currently, section 80TTA provides deduction up to Rs 10,000 p.a. only with respect to the interest from savings bank accounts with banks/co-operative society/post office.
However, for the purpose of enabling majority of taxpayers to avail this tax benefit, the existing scope of the said section needs to be expanded in order to cover other types of interest such as interest on bank/post office term deposits, recurring deposit etc. Moreover, such threshold limit of Rs 10,000 also needs to be enhanced to Rs 20,000 as there was no change in the limit since its introduction by Finance Act 2012, Surana added.
There are numerous exemptions available with negligible upper limits such as Children Education Allowance (Rs.100 pm per child), Children Hostel Expenditure Allowance (Rs 300 pm per child). The limit with respect to such deductions is not in consonance with the present education cost and needs to be adjusted for inflation and accordingly, enhanced. Further, the exemption limit of Rs 1,500 u/s 10(32) applicable at the time of clubbing of minor’s income under section 64(1A) was last revised in 1993 and thus, an upper revision in the same is long overdue. Such exemption limit may be hiked to Rs 15,000 considering the inflation in last 28 years. It may be worthwhile to consolidate all deductions pertaining to the children in one single consolidated deduction of Rs 20,000 per child, Surana added.
The threshold limit of Rs 10,000 for payment of advance tax was last amended by Finance Act, 2009.
Considering the inflation in the economy over the last 12 years as well as reducing compliance burden, there is a need to increase the threshold limit from the present Rs 10,000 to Rs 30,000.
Budget to be paperless
Like last year, Union Minister Nirmala Sitharaman will present the Union Budget for FY23 in paperless form at the Parliament on February 1.
The Budget will also be available on a bilingual mobile app after it is tabled in the Parliament to provide easy access to all the stakeholders.
The app will allow complete access to 14 Union Budget documents, including the Budget Speech, Annual Financial Statement, Demand for Grants, and Finance Bill, among others.
Last year, the Union Budget was delivered in a paperless form for the first time. The Union Budget Mobile App was also launched for hassle-free access of Budget documents by the Members of Parliament as well as the general public.
Meanwhile, the Finance Ministry said in a statement that owing to the Covid situation, instead of the customary ‘Halwa ceremony’, this year sweets were provided to the core staff who are due to undergo ‘lock-in’ at their workplaces in order to maintain secrecy of the financial document.
Sitharaman to begin her day at 9 am on Feb 1
Finance Minister Nirmala Sitharaman will begin her day on February 1 — the day she is scheduled to present the Union Budget 2022-23, at 9 a.m.
The Minister along with her team is scheduled to leave for Rashtrapati Bhavan from the Finance Ministry at 9 a.m.
After meeting President Ram Nath Kovind, the Finance Minister will brief the cabinet, headed by Prime Minister Narendra Modi, and then leave for the Parliament, informed the director general (media and communication) of the Ministry of Finance.
As per the established traditions, the President of India is the first to be briefed about the budget provisions by the Union Finance Minister.
It always a customary meeting as the President does not suggest any change in Union Budget, but officially it is all about taking the permission from the President by the Finance Minister before presenting the Budget in the Parliament.
After meeting the President, Sitharaman is to meet the Cabinet, headed by Prime Minister Narendra Modi, and brief the Cabinet about the budget.
“The ministry of finance maintains secrecy about the budget… before presenting his/her speech, the finance minister is bound to keep secrecy about the Budget provisions,” an official said.
