The finance ministry is exploring various options to benefit the growth of the country and the common people in the Pandemic time. In the event of tough times, the budget for 2022 would help the economy to boost its growth and they also benefit the lives of the citizen of India. The budget is likely to be growth and health infrastructure focused as the current COVID-19 event demands. However, there are various other things that also play major role in the Budget 2022.
Hike In Tax Deduction
Despite the fact that the basic exemption limit has not been updated in years, it is unlikely that the basic exemption limit or tax rates will be changed in the Union Budget 2022. The deduction limitations, on the other hand, maybe increased. Section 80D, which covers paid medical insurance premiums, is one such deduction limit that is expected to rise.
Health insurance premiums and some health costs are excluded from income tax under Section 80D of the Income Tax Act of 1961. Health insurance premiums are tax-deductible up to Rs 25,000 for individuals under 60 and up to Rs 50,000 for those over 60. Premiums paid for your spouse, dependent children, and parents may be excluded. The guidelines exclude payments for preventative health check-ups up to Rs 5000 from taxation. This is a fantastic tax benefit because it encourages people to have health insurance and get preventative treatment.
The Indian government has been working on a law to regulate cryptocurrencies in the country, which is set to be introduced to Parliament in November during the Winter Session. However, there has been no significant progress on the bill. Experts assume the government would address it in the February budget because it was not discussed throughout the period. Some major announcements on the taxability of cryptocurrencies in India and regulatory compliances around cryptocurrencies might be made in Budget 2022. But, still, it's just assumptions and predictions.
The emphasis of this year's Budget is likely to be on growth. As a result, the fiscal deficit is expected to remain high in the coming year. The government would construct a balanced budget that took into account growth as well as revenue-generating options such as disinvestments. There's also the option of continuing the process of bringing off-balance-sheet borrowing on NHAI and other entities onto the balance sheet, improving overall transparency. The anticipation is that we will see more issuances in the longer end of the curve next year, leading the curve to steepen.
The government plans to set objectives for completing the monetization program in the 2018 budget, the same as it does for tax and divestiture targets. Under the National Monetization Pipeline, governments may make declarations assessing the monetization of public undertakings (NMP). On the one side, the market would look at the monetization of public assets and disposal of holdings in PSUs, as well as calibrated expenditure on social welfare and health, and on the other, CAPEX (including Infra and Railways). It can also use REITs to monetize the housing and commercial real estate it owns.
Given the importance of infrastructure in a country's growth, it is recommended that project implementation under the Gati Shakti and National Infrastructure Pipeline (NIP) Scheme be expedited. The appropriate governments and agencies might be given a list of the shelf-ready projects found in the NIP. Increasing private infrastructure investment can help keep things moving forward. The most likely focus of Budget 2022 will be on infrastructure improvements. It might contain a full list of government assets ranging from roads to railroads that the government intends to monetize in FY 2022-23. According to reports, motorways and expressways may be given particular consideration.