New Delhi, February 1: Finance Minister Nirmala Sitharaman on Tuesday, i.e. February 1, presented the Union Budget 2022-23 in Parliament. In the Union Budget 2022, it was announced that more than 350 exemption entries proposed would be gradually phased out, like exemption on certain agricultural produce, chemicals, fabrics, medical devices, and drugs and medicines for which sufficient domestic capacity exists. A large number of items, including mobiles phones, will become cheaper, while imported items will become costlier.

Notably, customs duty on cut and polished diamonds and gemstones has been reduced to 5 percent. The exemption on implements and tools for the agriculture sector was also extended by the Finance Minister. India’s economic growth is estimated at 9.2 percent in the budget. Union Budget 2022-23 Highlights: Cryptocurrency Income to be Taxed At 30%, No Change In Income Tax Slabs; Here Are Key Takeaways.

What Will Become Cheaper?

  • Gemstones and diamonds as customs duty on cut and polished diamonds and gemstones being reduced to 5 percent.

  • Imitation Jewellery.

  • Customs duty on certain critical chemicals, namely methanol, acetic acid and heavy feedstocks for petroleum refining, being reduced.

  • Mobile phones

  • Mobile phone chargers

  • Steel scraps as customs duty exemption given to steel scrap last year extended for another year to provide relief to MSME secondary steel producers.

  • Clothes

What Will Become Costlier?

  • Customs duty on umbrellas being raised to 20 percent. Exemption to parts of umbrellas being withdrawn.

  • All imported goods.

In one of the announcements in the budget, cryptocurrency income will now be taxed. Income from virtual digital assets will now be taxed at 30 percent. There will not be any change in income tax slabs and rates as no announcement was made by the Finance Minister during her budget speech in this regard. The Finance Minister announced that the Reserve Bank of India (RBI) would launch a digital rupee using blockchain and other technologies in the financial year 2022-23.

(The above story first appeared on LatestLY on Feb 01, 2022 02:37 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).