Hi All, Budget View from Team Aera The government of India has put their ambitious and national building plan with today's Budget. We find that the Budget is impressive. Please find the attached first cut review of the Budget. We welcome comments from you as well as ready to provide any more details /clarity on this finance bill 2022 .. Thanks Team Aera #unionbudget2022 #unionbudget #indiamarket #growthpotential

1. INDIA BUDGET 2022-23 :
WHAT WE POSSES IS TEMPORARY, BUT WHAT WE BECOME IS PERMANENT
DETAILED ANALYSIS

2. Team Aera
Aera Consultancy & Services Private
Limited (Aera)
Website : www.aera.co.in
Email : union.budget@aera.co.in
CIN : U74900MH2013PTC240380
PUBLICATION
Notice
© 2022 Aera Consultancy & Services Private Limited
This is a controlled document. Unauthorised access, copying, replication or usage for purpose other than for
which it is intended, are prohibited.
This booklet highlights and detailed key proposals put forth by Honourable Finance Minister of India in her
Union Budget 2022-23. This booklet is for private circulation amongst clients and professional colleagues of
Aera Consultancy and Services Private Limited only (“Aera”). It is not for general circulation and is under no
circumstances an offer, invitation or solicitation of any kind. This booklet is intended to be overview of the
proposal put forth and is neither to be construed as comprehensive nor as to render taxation, legal,
economic or financial advice.
Further, this booklet contain only proposals & amendments as given in the Financial Bill 2022, which
may be modified before it receives the approval and assent of the Parliament and the President.
Please note
This note is prepared based on the Financial Bill 2022 released by the Government. It may undergo minor or
major changes based on any further circular/notification/ clarification provided by the Government or any
other department.
Union Budget
2022-23
Relevant to
Union Budget 2022-23

3. Team Aera
union.budget@aera.co.in
www.aera.co.in
EDITORIAL
"The only people who see the whole picture are the ones who step out
of the frame" Salman Rushdie
On 1st February 2022, the Finance Minister, Mrs Nirmala Sitaram presented her forth Budget to the Indian Parliament for the year
2022. The Budget focused on the gradual fiscal consolidation, public capex, creating a conducive environment for private capex,
progressive, grown mindset and raising resources via Debt and Disinvestment. It is clear push for sustainable development, the
environment, technological innovation, signal to the Global players that India is open, bring frictionless and transparency in the
system.
As suggested by FM earlier that the budget is in line with their previous year mega visionary budget. With the progressive and growth
centric, India is ready to welcome $ 5 trillions GDP by 2024-25. This Finance Bill has fulfilled the expectation and answered various
nation building questions. Time will only tell whether this Bill achieves what it sets out to do as Execution will hold the key for success.
Surprisingly, there is nothing negative in the Budget as per various news and expectation before the Budget. So no bad news is a
good news
One of the key elements in Union Budget 2022 is the intent to commitment from the Government by forward thinking and Ready for
futuristic , progressive kick-start major structural and fundamental reforms for the long term opportunities for India. With a target to
double farm income by 2022, the government has announced multiple measures or action points to strengthen the agricultural
ecosystem in the country. With huge Government capital expenditure in 2022-23, the govt has committed to provide the relief from
the pandemic.
In our opinion, the budget has primarily attempted to strengthen the long term fundamental of the economy by taking steps toward
agricultural, Health , Education, MSME and tax reforms. Significant measures in form Government capital expenditure has been
announced to boost the near team growth momentum in the economy, as expected by participants
As per us, this Budget is a “Transformation, structural nature, grabbing the opportunity and great for national building plan”.Our
Honourable FM has proven above quote of Mr. Salman Rushdie as true.
As always , we bring our In-depth Analysis of the key provisions of the Finance Bill 2022 presenting a detailed and incisive dissection.
Hope you find reading this interesting and helpful to have a detailed understanding of the Finance Bill 2022
Union Budget
2022-23
Relevant to
Union Budget 2022-23

4. MINISTRY OF FINANCE - THINK TANK
Mrs. Nirmala Sitharaman
Finance Minister
Nirmala Sitharaman delivered
her fourth Union Budget.
Known to deliver long Budget
speeches. Her 2021-22 Budget
is called as once in a century
Budget
The architect of Economy
survey 2021-22.
Growth centric mindset
Sanjeev Sanyal
Principal Economic Advisor
Just appointed on 29th
Jan 2022 as Chief
Economic Advisor
Dr V Anantha Nageswaran
Chief Economic Advisor
Independent India's first budget was presented on November 26, 1947.

5. Economy Survey 2021-22
MR. SANJEEV SAYANI
PRINCIPAL ECONOMIC ADVISOR
Section 01
Highlights
•Growth centric
•Debt driven

6. Economic Survey 2021-22 : Key Highlights
GDP Projection
India's gross domestic product (GDP) to grow
by 9.2% this year, in line with recent official
estimates, and 8% to 8.5% in FY22-23.
The Economic Survey for 2021-22, tabled by finance minister Nirmala Sitharaman in
the Lok Sabha on Monday, expects India's gross domestic product (GDP) to be 8%
to 8.5% in FY22-23. However, the GDP growth estimated in the Economic Survey for
FY23 is lower than estimates of 9% and 8.7% by the International Monetary Fund
(IMF) and the World Bank, respectively.
Summary
Foreign exchange reserves
Foreign exchange reserves at US$ 634 bn on
31st Dec 2021. This is equivalent to 13.2
months of merchandise imports & is higher than
the country’s external debt.
Fiscal Deficit
Fiscal Deficit target of 6.8 per cent of GDP
(15.07 lacs crores deficit) for 2021-22
achievable.
Pre Covid level
Economic output surpasses pre-covid levels.
Agricultural sector was the least impacted by the
pandemic-related disruptions.
Revival in the Indian residential real market in
2021 in terms of growth in sales, prices and new
launches.
Disinvestment
Disinvestment target was 1.75 lac crores. Govt
was able to mobilise only Rs 9330 crores so far.
Investment Sentiments
Investment to GDP ratio to 29.6% in 2021-22,
the highest in seven years.
Private investment recovery is still at a nascent
stage, there are many signals which indicate
that India is poised for stronger investment.
Investor sentiment in manufacturing at all time
high.
Export
Out of an ambitious export target of US$ 400
billion set for 2021-22, India has already
attained more than 75 per cent of it by
exporting goods worth US$ 301.4 billion.
40 per cent of India’s exports is still accounted
to only seven countries.
In order to achieve the GDP of $5 trillion by 2024-25, India needs to spend about $1.4 trillion over
these years on infrastructure

7. 76%
82%
31%

8. MRS. NIRMALA SITHARAMAN
FINANCE MINISTER
Budget 2022-23 - At a glance
Section 02
Highlights
•Recovery
•Relief
•Reform

9. Budget:SMILERATINGINFOGRAPHIC
In Brief
EXCELLENT
Forward Thinking , Progressive,
Growth Oriented, Trust on capex,
New Economy like Digital economy,
Digital Currency
GOOD
Import Protection for Capital Goods,
Private capex participation, Building
Infrastructure, Boosting manufacturing,
Fiscal Discipline, Support for MSME/
startups. Agriculture support
OKAY
BAD
POOR
Sovereign Green Bond, Borrowing
funded, Infra status for Data Center,
Ease of Business, Allow updated
return to taxpayers,
No Relief for Salaried and High
Income class( No changes in Tax
Slabs and Rates)
Ignorance for Tourism and Hospitality
Sector,
Higher Tax rate for Digital Asset,
Inflation centric GDP Growth

10. Budget at a Glance
1. Proposes fiscal deficit of 4.5% of GDP by 2025/26
2. Projects fiscal deficit of 6.4% of GDP in 2022/23
3. Revised fiscal deficit for 2021/22 at 6.9% of GDP
4. Total expenditure in 2022/23 seen at 39.45 trillion
rupees
5. States will be allowed 4% fiscal deficit to GDP in
FY23
6. 50 year interest free loans over and above normal
borrowing allocated to states
7. Scheme for financial assistance to states for capital
investment outlay to be 1 trillion rupees in 2022/23

11. 35%
5%
5%
16%
15%
7%
15%
2%
Non Debt capital receipts
Income tax
Union Excise Duty
Corporate Tax
GST
Customs
Non tax Revenue
Borrowing and other liabilities
Rupees Comes from
Government Inflow and Outflow

12. 9%
8%
8%
20%
17%
10%
15%
9%
4%
Pension
Other Expenditure
Central Sector Scheme
Finance, Commission and other Transfer
State's Share of Taxes and Duties
Interest Payment
Defence
Subsidies
Central Sponspored Scheme
Rupees Goes to
Government Inflow and Outflow

13. FOCUS ON GROWTH AND ALL
INCLUSIVE WELFARE
PROMOTING TECHNOLOGY
ENABLED DEVELOPMENT,
ENERGY, TRANSITION &
CLIMATE ACTION
VIRTUOUS CYCLE STARTING
FROM PRIVATE INVESTMENT,
CROWDED IN BY PUBLIC CAPITAL
INVESTMENT
• Driven by seven engines:
Roads, Railways, Airports,
Ports, Mass Transport,
Waterways, and Logistics
Infrastructure.
• National Master Plan aimed
at world class modern
infrastructure and logistics
synergy
PM GatiShakti Inclusive Development
• Ease of Doing Business 2.0
• Ease of Living
Productivity Enhancement &
Investment
• Har Ghar, Nal se Tal
• PM Awas Yojana
• PM - DevINE
• Digital Banking by Post office
• Digital Payment
• Vibrant villages Programme
• Blended finance for sunrise
sector
• Measures to aid investment by
Venture Capital & Private
Capital Investment
• Green Bond
• Infrastructure status for Data
Centre and Energy storage
Goals of Amrit Kaal -
25-year-long lead-up to India@100.
FOUR PRIORITIES FOR BUDGET 2022-23
Financing of
Investment

14. Direct Tax
NOTE : UNLESS OTHERWISE SPECIFIED, DIRECT TAX PROPOSALS WILL BE EFFECTIVE FROM ASSESSMENT YEAR 2022-23
Section 03
• Reducing Disputes and Simplifying Settlement
• Incentivisng Digital
• Procedural
Highlights
• Reducing Disputes and Simplifying Settlement
• No changes in Tax slabs and Rates
• Tax on Income from Digital Asset
• Surcharge on Long term capital capped
• New provision to allow taxpayers to file an updated return.
• No repetitive appeals for common question of laws

15. Provision for filing ‘Updated Income Tax returns’
within 2 years from end of relevant Assessment year
New updated Return
DIRECT TAX UPDATES
• Reduced AMT rates for Co-operatives from 18.5% to 15%
• Reduced surcharge @7% for Co-operatives with total
income of 10Cr
Reduced Alternate minimum tax rate and
Surcharge for Cooperatives
• Start-ups established before 31.03.2023 (earlier –
31.03.2022; now extended by 1 year) will be provided tax
breaks
• Last date for commencement of manufacturing for
claiming lower tax regime under Section 115BAB to be
31.03.2024 (earlier 31.03.2023; now extended by 1 year)
Extension for startup and Manufacturing
• Income from transfer of virtual digital assets to be taxed at
30%;
• No deduction for expenses other than cost of acquisition;
No set off of losses
• TDS @ 1% on consideration above specific threshold
• Gift to be taxed u.s 56(2)
Taxation of Virtual Digital Asset
No repetitive appeals for common question of laws
Litigation management to avoid repetitive appeals
by the Department
• Surcharge of certain AOPs to be capped at 15%
• Surcharge on Long Term Capital Gains on any assets to
be capped at 15%
Rationalization of Surcharge
• Health and education cess not allowable as business
expenditure u/s 37
• No set off of losses against undisclosed income detected
during search
Clarification
• Off-shore banking units/ IFSC income to be provided
exemptions
• Rationalising TDS provision for Agent
Other Changes

16. Indirect Tax
Section 04 Customs
• Change in Duty rates
Goods and Service Tax (GST)
• Extension in time limit to avail ITC and correction in GSTR1 and
GSTR-3B
• Rate of Interest
• Procedural

17. • Time-limit to avail ITC u/s 16(4), credit note and any rectification of error in GSTR-1/ GSTR-3B extended till 30th November of
next year from 30th September.
• Additional Condition for availment of ITC u/s 16(2)- ITC can be availed only if the same is not restricted in GSTR-2B.
• Composition Tax Payer’s Registration can be cancelled suo-moto if they have not filed their GSTR-4 return beyond 3 months from
the due date.
• Refund claim of any balance in the electronic cash ledger shall be made available.
• Rate of Interest u/s 50(3) prescribed as 18% in all cases.
INDIRECT TAX UPDATES
GST
Customs
• Import duty on certain chemicals are being reduced
• Customs duty exemption on steel scrap to be extended for another year for small and medium-sized businesses
• Customs duty on stainless steel, flat products, high steel bars to be revoked
• Unblended fuel to get additional duty of 2 rupees per litre from October 2022
• Duty on umbrellas is being raised to 20 per cent. Exemption to parts of umbrellas is being withdrawn.
• Exemptions are being provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified
leather, furniture fittings and packaging boxes
• Customs duty on cut and polished diamonds and gemstones is being reduced to 5 per cent.
• Duty on umbrellas is being raised to 20 per cent. Exemption to parts of umbrellas is being withdrawn

18. Team Aera
Sector Impact
Section 06

19. Agriculture
Automobiles and Ancillaries
Banks
Cement
Consumer Discretionary
Education
Housing Finance Company
SECTOR
OVERALL
OUTCOME
DETAILS
Positive
Very Positive
Very Positive
Neutral
Positive
Positive
Partial Positive
•Major thrust to boost Economy will help for credit demand
generation
•Promote chemical free farming some negative for fertiliser
•Encouragement of branding, fund for startup and innovation
•Housing for All is one of the major push by the
Government
• Government has major thrust for Infrastructure development and
Housing as major demand driver
•Nothing specific for this Sector
•Major thrust for Road construction
•High Quality E-content development
•Virtual labs and digital university

20. Healthcare
Insurance
Media
Metals and Mining
NBFC’s
Oil and Gas
Real State
SECTOR
OVERALL
OUTCOME
DETAILS
Positive
Neutral
Neutral
Positive
Negative
Positive
Neutral
•Nothing specific for this sector
•National Digital Health Ecosystem will be rolled out
•National Tele mental health program and major thrust for this
•Nothing specific for this sector
• Housing for All is one of the major push by the Government
• Fund allocation for Affordable Housing.
•Increase in International crude price and Unblended fuel to get
additional duty of 2 rupees per litre from October 2022
•No relief in the Budget may bad for the sector
•Nothing specific for this sector
•Major thrust to boost Economy will help for credit demand
generation

21. Telco
Tourism
SECTOR
OVERALL
OUTCOME
DETAILS
Neutral
Negative
•One of the most impacted sector in COVID-19
•No relief in Budget may bad for the sector
•5g auction and roll out
•One of the most impacted sector in COVID-19
•No relief in the Budget may bad for the sector
•One of the most impacted sector in COVID-19
•No relief in the Budget may bad for the sector

22. SomeMemorableBudget
Make a big impact
1973-74 : The Black Budget
The 1973-74 Budget presented by Yashwantrao Chavan
in the Indira Gandhi government was called the Black
Budget as the fiscal deficit during that year was Rs 550
crore. It was a time when India was going through acute
financial distress
1997-98: Dream Budget
2002-03: Rollback Budget
1991-92: Epochal Budget
Manmohan Singh's landmark 1991 budget under the PV
Narasimha Rao government that ended licence raj and
began the era of economic liberalisation, is known as
'Epochal Budget'.
2000-21: Millennium Budget
A
C
E
B
D
P Chidambaram in the 1997-98 budget used the Laffer
Curve principle to lower tax rates to increase collections.
He slashed maximum marginal income tax rate for
individuals from 40 per cent to 30 per cent and that for
domestic companies to 35 per cent besides unleashing a
number of major tax reforms
Yashwant Sinha's 2002-03 budget for the NDA
government headed by Atal Bihari Vajpayee is popularly
remembered as the Rollback Budget as several
proposals in it were withdrawn or rolled back.
Yashwant Sinha's Millennium Budget in 2000 laid the road
map for the growth of India's Information Technology (IT)
industry as it phased out incentives on software exporters
and lowered customs duty

23. Team Aera
Aera Consultancy & Services Private
Limited (Aera)
Website : www.aera.co.in
Email : union.budget@aera.co.in
CIN : U74900MH2013PTC240380
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Union Budget
2022-23
23

24. AERA’S ESTIMATES