The Union Budget for the financial year 2022-23 was presented today by Hon’ble Minister Smt. Nirmala Sitharaman. Giving their response to the Budget, Shri Hemant Shah, President GCCI and his team of Office Bearers stated that this budget is a futuristic budget with many future growth-oriented initiatives. 

GCCI President and his team highlighted some of the key aspects of the Union Budget 2022 as below:

Positive Aspects

1. Decision to introduce digital currency through RBI.
2. Additional allocation of Rs. 19,500 crores to for PLI in solar PV module manufacturing and launch of scheme for design-led manufacturing to build a strong ecosystem for 5G as part of the Production Linked Incentive Scheme.
3. Interlinking of Udyam, e-Shram, NCS and ASEEM portals and widening of their scopes, so as to also provide G2C, B2C and B2B services.
4. Emergency Credit Line Guarantee Scheme (ECLGS) has provided additional credit to more than 130 lakh MSMEs. Further, Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with required infusion of funds. It will facilitate additional credit of Rs. 2 lakh crore for Micro and Small Enterprises and expand employment opportunities.
5. Introduction of a new provision permitting taxpayers to file an Updated Return on payment of additional tax and updated return can be filed within two years from the end of the relevant assessment year.
6. Tax exemption to start-ups is extended to March 2023 and extension of the last date for commencement of manufacturing or production under section 115BAB by one year i.e. from 31st March, 2023 to 31st March, 2024 for availing concessional tax rate of 15 %.
7. Surcharge on transfer of long-term capital gains tax at 15%
8. Announcements related to GIFT city will provide a boost to the project.
9. The issuance of e-Passports using embedded chip and futuristic technology
10. New act for SEZs with involvement of the states
11. 68 per cent of the capital procurement budget will be earmarked for domestic Defence industry
12. Infrastructure status will be provided to Data Banks and Energy Storage Systems

Negative Aspects

Digital Assets

• The loss from transfer of virtual digital asset should have been allowed to be set off against any other income.

Direct Tax

• The removal of various cess should have been with prospective effect instead of retrospective effect

What is missing

1. The healthcare sector has suffered immensely due to pandemic and yet been able to come out fully, some specific relief measures or incentive schemes were expected for the Healthcare sector which does not seem to be provided in the Budget in view of the same.
2. For availing benefits of PLI Scheme the minimum investment limit should have been reduced to benefit the MSME units and specific sum should have been allocated for the MSME units out of total allocation
3. Income Tax rates should have been rationalized in view of the inflationary trend