Union Budget 2022 for NRIs: Highlights for NRI taxpayers & investors

The Union Budget 2022 presented by the Finance Minister Nirmala Sitharaman on 1st February 2022 primarily focuses on ‘digital technology and sectors like infrastructure, logistics, Fintech and provision of e-services to Indians. In her budget speech, she projected a growth of 9.27% for the coming year. 

Offering relief to long-term capital gain investors in capital assets, the surcharge on the LTCG tax from equity funds and listed stocks have been capped at 15%. As a result, NRI investors and overseas funds will get benefits from the 15% cap on surcharge on LTCG tax.

Union Budget 2022 for NRIs: Key takeaways for NRI taxpayers & investors
Union Budget 2022 for NRIs

Key takeaways from Union Budget 2022 for NRI taxpayers & investors

Income tax

  • Income tax slabs for FY 2022-23 will remain the same as for FY 2021-22.
  • Taxpayers can now update IT returns within 2 years from the end of the relevant assessment year. 
  • Tax incentives for startups have been extended by one year. Eligible startups incorporated under Section 80-IAC will stand to get tax benefits until 31 March 2023.
  • Surcharge on long-term capital gains (LTCG) tax capped at 15%.
  • Tax rate for cooperative societies reduced to 15%. 
  • Income earned from transfer of digital assets such as cryptocurrency will be taxed at 30% and TDS will be levied at 1% above the threshold. 
  • Gifts of cryptocurrency will also be taxable at the receiver’s end.
  • Brought forward loss will not be set off against undisclosed income discovered during any survey.
  • Corporate surcharge to be reduced from 12% to 7%.

Digital currency

  • The Reserve Bank of India will launch a central digital currency in 2022-23.

Digital banking

  • Boost for digital payments by setting up 75 digital units
  • An online bill system to be launched to reduce the delay in payment.

Startups and investment: A mixed bag for startups

  • Startup companies will be empowered to facilitate ‘Drone Shakti’ to promote drone usage.
  • An expert committee will be set up to review regulatory for venture capital. 
  • In a move that will ease exits from startups and Unicorns, reduction of surcharge on unlisted shares from 28.5 % to 23 % has been announced. 

Budget allocation

  • The union government projects to peg the fiscal deficit at 6.4% of GDP for FY23.
  • Effective capital expenditure of the central government is estimated at Rs. 10.68 lakh crore in FY 2022-23 i.e. about 4.1% of GDP. 
  • Public issue of LIC is expected shortly. 


  • e-passports using embedded chips and futuristic passports will be rolled out.
  • This type of passport will have thicker front and back covers.
  • The design of the e-passport was tested in a US government recognized laboratory.
  • A small silicon chip on the back cover of the passport will have 64 kilobytes of memory space.
  • The chip will also contain the holder’s photograph and fingerprints, and store 30 visits.

After the budget announcements the sensex rose nearly 900 points.

NRIs living around the world can ask any questions related to Union Budget 2022, such NRI taxation, TDS, investment, etc. You can download SBNRI App to connect with our NRI Tax / investment experts and get end-to-end assistance related to NRI tax filing. SBNRI will also help you get a lower TDS Certificate. 

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