India is the fastest growing economy in the world also the sixth largest. if you were hoping for a tax cut it would have been disappointing. If you were hoping for more cash in hand today it would have been disappointing.
Because this budget is looking at the future. It talks about themes and issues that will shape our tomorrow not grand populist allocations or stops. This budget talks about climate change, mental health, startups, capacity building, digital currency, e-passports.
India will not ban digital assets instead india will tax them last year there were reports that the government could ban all forms of cryptocurrencies assets like bitcoin and ethereum india doesn’t have a law to regulate them yet today finance minister nirmala sitharaman digital assets will be taxed at the rate of 30 percent for the taxation of virtual digital assets.
We advise to offer that any profits from transfer of any digital virtual asset will be taxed on the rate of 30 percent. A thirty percent tax on all digital assets which includes everything cryptocurrencies nfts are non-fungible tokens there are no exemptions here what kind of tax is this it’s on income or transfer of assets. so if you make profits by investing in crypto or if you transfer these assets to another person you will pay a tax of 30 percent.
Now that is bittersweet information for investors bitter due to the fact they’ll be taxed now and sweet due to the fact the belongings will now no longer be banned this circulate is a sign that india goes to alter crypto now no longer ban it.
The digital rupee india is getting its very own digital currency the reserve bank of india will issue it in the new financial year that’s 2022. Introduction of a central bank digital currency will give a boost a big boost to digital economy digital currency.
It will result to a more efficient and cheaper currency management system. So we’ll have the indian rupee on an indian blockchain how many countries have this nine so far india wants to be on that that list and this will suggest essential adjustments with inside the indian economic system.
Income tax no change there you can see it as the glass half full or the glass half empty you’ll be paying the same income taxes last year what has modified is the way you record the those tax returns you could now record an up to date return within two years. So in case you get it incorrect the first time you could fix it within two years.
Gati Shakti Plan
Major connectivity push india wants to spend big on intra 20,000 crore rupees that’s more than two billion dollars. This is the prime minister’s gati shakti plan to facilitate faster transfer of goods speed up cargo movement and improve the logistics network.
This money will be spent on roads, railways, airports, mass transport, waterways and logistics infrastructure. The largest spending may be on national highways in next 3 years. India desires to construct 400 new trains and a 100 cargo terminals.
India plans to spend a whopping 100 billion dollars on infrastructure that’s 35 percent more than 2021 and double what india spent before the pandemic and this is direct spending meaning the government will foot the bills for all these projects infrastructure projects of all kinds will benefit from this move.
Make in india is getting a boost in defense there is marginal increase in the defense budget the allocation this year is 5.25 lakh crore rupees that’s more than 60 billion dollars. It’s an increase of almost five percent from last year but the bulk of the budget will go to indian manufacturers 68 of the procurement will happen from domestic players 25 percent has been set aside for research and development.
A large chunk of this money is going to go towards upgrades also being upgraded is the indian passport.
Starting this year(2022) indians will be issued e-passports. They have been first introduced in 2019 and that they have been rolled out up to now 20,000 officers and diplomats had been issued e-passports.
Now we will be able to get one how will this passport be different it comes with a chip. A small silicon chip embedded at the lower back of the passport. This chip will contain all the necessary information like your name, your address, your passport number, plus data on your last 30 visits more than 100 countries have such passports.
Upgrading india’s mobile networks 5g is coming next year spectrum will be auctioned this year. India also wants to become a hub for 5g manufacturing incentives have been announced for equipment makers plus there is also a proposal to bring internet to indian villages. The government is going to award contracts to lay optical fiber cables around the country which brings us.
Digital education it is getting a major push in this budget. India plans to develop a digital university the finance minister said it will provide students with world-class education.
There is some other thought referred to as e-vidya below this the authorities of india had in advance installation 12 television channels to educate students, This will now be elevated to 200 channels the concept is to offer supplementary training in one-of-a-kind nearby languages.
The budget talked about mental health which is a rare issue to be taken up in a union budget. The finance minister stated the wuhan virus outbreak has accentuated intellectual fitness issues throughout age groups.
So india will launch a national tele mental health program to better the access to quality mental health counselling and care services. A national tele intellectual fitness program may be released with nimhans being the nodal center IIIT bangalore offering technology support.
So that was the budget can it make india a 5 trillion dollar economy.