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 Highlights of Union Budget 2022-23
 The Union Budget is the annual budget of the Indian Republic and is also known as theAnnual
Financial Statement.
o Article 112 of Indian Constitution lays down that is a statement of the estimated
expenditure and receipts of the government for one financial year (1st April-31st March).
 The Budget is presented on 1st Februaryso that it can materialise before the
commencement of the new financial year which starts on 1st April.
 Recently, the Minister of Finance presented the Union Budget 2022-23.
o With this Budget, India has marked the 75 years of Independence through Azadi ka
Amrit Mahotsav.
 The budget also lays down a plan for next 25 years and refers to the same period as Amrit
Kaal.
o It has been termed as “25-year-long lead up to India@100”.

This Budget lays a parallel track of

 A blueprint for the Amrit Kaal, which is futuristic and inclusive.
o This will directly benefit our youth, women, farmers, the Scheduled Castes and the
Scheduled Tribes.
 Big public investment for modern infrastructure, readying for India at 100.
o This shall be guided by PM GatiShakti and be benefited by the synergy of multi-modal
approach.
Moving forward, on this parallel track,Budget lays down the following four priorities:
 PM GatiShakti
 Inclusive Development
 Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition, and
Climate Action
 Financing of Investments

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 Condition of Indian Economy
 India’s economic growth in the current year (2021-22) is estimated to be 9.2% of GDP.
o It is the highest among all large economies.

Quarterly Recovery Graph in terms or GDP and GVA

 The revised Fiscal Deficit in the current year is estimated at 6.9% of GDP as against 6.8%
projected in the Budget Estimates.
 The Fiscal Deficit in 2022-23 is estimated at 6.4% of GDP.
o It is consistent with the broad path of fiscal consolidation announced last year to reach
a fiscal deficit level below 4.5% by 2025-26.

Trends in GDP in terms of GDP percentage

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 Sources of Deficit Financing

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 PM GatiShakti
 Launched in October 2021, PM GatiShakti National Master Plan for Multi-Modal Connectivity is
an initiative aimed at coordinated planning and execution of infrastructure projects. The
objective is to bring down logistics costs.
o GatiShakti is a digital platform that brings development projects of 16 ministries,
including railways and roadways, together for integrated planning and
implementation.
 With its launch, it also subsumed National Infrastructure Pipeline announced in 2019.
Key Points discussed regarding PM GatiShakti in Budget 2022-23
 Its scope will encompass the seven engines (Roads, Railways, Airports, Ports, Mass Transport,
Waterways and Logistics Infrastructure).
 Now, its scope will also include the infrastructure developed by the state governments as per
the GatiShakti Master Plan.
 The touchstone of the Master Plan will be world-class modern infrastructure and logistics
synergy among different modes of movement both of people and goods and location of
projects.
 Road Infrastructure
o PM GatiShakti Master Plan for Expressways will be formulated in 2022-23
 This is to facilitate faster movement of people and goods.
o National Highways network to be expanded by 25,000 km in 2022-23. Rs. 20,000
crore to be mobilized for the expansion.
 Multimodal Logistics Parks
o Contracts for implementation of Multimodal Logistics Parks will be awarded in 2022-
23.
 This will be established at four locations through PPP (Public-Private
Partnerships) mode.
 Multimodal Movement of Goods and People
o The data exchange among all mode operators will be brought on Unified Logistics
Interface Platform (ULIP).
 This is toprovide real time information to all stakeholders, lead to efficient
movement of goods through different modes, and improve international
competitiveness.
o For organizing seamless travel of passengers, open-source mobility stack will be
facilitated.
 Railways
o Development of new products and efficient logistics services for small farmers and
Small and Medium Enterprises, besides taking the lead in integration of Postal and
Railways networks to provide seamless solutions for movement of parcels.

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 o 2,000 km of
railway network will be
brought under Kavach, the
indigenous world-class
technology for safety and
capacity augmentation in
2022-23.
o 400 new-generation
Vande Bharat Trains to be
manufactured during the
next three years.
o ‘One Station-One
Product’ concept to help
local businesses & supply
chains.
o 100 PM GatiShakti Cargo
Terminals for multimodal
logistics facilities will be
developed during the next
three years.

 Parvatmala: National Ropeways Development Programme

o National Ropeways Development Programme will be taken up on PPP mode.
 This will be implemented, as a preferred ecologically sustainable alternative to
conventional roads in difficult hilly areas
o Its aim is to improve connectivity and convenience for commuters, besides promoting
tourism.
o This may also cover congested urban areas, where conventional mass transit systems
are not feasible.
 Mass Urban Transport Development
o Multimodal connectivity between mass urban transport and railway stations will be
facilitated on priority.
o Innovative ways of financing and faster implementation will be encouraged for
building metro systems of appropriate type at scale.
 Capacity Building for Infrastructure Projects
o Skill up-gradation will be done for central ministries, state governments, and their
infra-agencies.
 It will be done technical support from the Capacity Building Commission.
o This is aimed to ramp up capacity in planning, design, financing (including innovative
ways), and implementation management of the PM GatiShakti infrastructure projects.

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 Inclusive Development
 Agriculture& Food Processing
o Rs. 2.37 lakh crore direct payment to 1.63 crore farmers for procurement of wheat and
paddy.
o 2023 has been announced as the International Year of Millets. Support will be
provided.
o A comprehensive scheme to increase domestic production of oilseeds will be
implemented.
o A scheme in Public Private Partnership (PPP) mode will be launched for the delivery of
digital and hi-tech services to farmers.
o NABARD will facilitate funds with blended capital to finance start-ups for agriculture
& rural enterprise.
o Use of ‘Kisan Drones’ for crop assessment, digitization of land records, spraying of
insecticides and nutrients.
o Chemical-free Natural Farming will be promoted throughout the country, with a focus
on farmers’ lands in 5-km wide corridors along river Ganga, at the first stage.

o Ken Betwa Project and River Linking Projects

 The implementation of Ken-Betwa rivers linking at an estimated cost of Rs
44,605 crore will be taken up. Allocations of Rs 4,300 crore in RE 2021-22 and Rs
1,400 crore in 2022-23 have been made for this project.
 9.08 lakh hectares of farmers’ lands to receive irrigation benefits by Ken-Betwa
link project.
 Draft Detailed Project Reports of five river links, namely Damanganga-Pinjal, Par-
Tapi-Narmada, Godavari-Krishna, Krishna-Pennar and Pennar-Cauvery have
been finalised.
o Government will provide a comprehensive package with participation of state
governments.
 This is to adopt suitable varieties of fruits and vegetables, and to use appropriate
production and harvesting techniques for farmers.
 Health
o An open platform for the National Digital Health Ecosystem to be rolled out.
 National Tele Mental Health Programme for quality mental health counselling
and care services to be launched.

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 o With National Institute of Mental Health and Neuro Sciences (NIMHANS) being
the nodal agency andInternational Institute of Information Technology-Bangalore
(IIITB) providing technology support.

 A network of 23 Tele-mental health centers of excellence will be set up.

o Integrated benefits to women and children through Mission Shakti, Mission Vatsalya,
Saksham Anganwadi and Poshan 2.0.
 It also envisages up-gradation of two lakh anganwadis to Saksham
Anganwadis.

 Education and Skill Development

o High-quality e-content will be developed for delivery through Digital Teachers.
o Establishment of Digital University for world-class quality universal education including
the personalized learning experience.
o Establishment of virtual labs and skilling e-labs will be set up to promote critical
thinking skills and simulated learning environment.
 To promote crucial critical thinking skills and to give space for creativity, 750
virtual labs in science and mathematics, and 75 skilling e-labs for simulated
learning environment, will be set-up in 2022-23
o ‘One class-One TV channel’ programme of PM e-VIDYA to be expanded to 200 TV
channels.
o Launch of Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal).
 This is to empower citizens to skill, re skill or upskill through on-line training.
o Start-ups will be promoted to facilitate ‘Drone Shakti’ and for Drone-As-A-Service
(DrAAS).
 Micro, Small and Medium Enterprises
o Raising and Accelerating MSME Performance (RAMP) programme.
 It has an outlay of Rs 6000 crore.
 This will help the MSME sector become more resilient, competitive and efficient.
o Interlinking of Udyam, e-shram, National Career Service and AtmaNirbhar Skilled
Employee Employer Mapping (ASEEM) portals.
o 130 lakh MSMEs provided with additional credit under Emergency Credit Linked
Guarantee Scheme (ECLGS).
 ECLGS to be extended up to March 2023.
 Guarantee cover under ECLGS to be expanded by Rs. 50,000 Crore to total
cover of Rs. 5 Lakh Crore.

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 o Under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE),
Rs 2 lakh Crore additional credits will be facilitated for Micro and Small Enterprises.
 Other Welfare Focused Schemes
o Allocation of Rs. 60,000 crore allocated to cover 3.8 crore households in 2022-23
under Har Ghar, Nal se Jal.
o Allocation of Rs. 48,000 crore allocated for completion of 80 lakh houses in 2022-23
under PM Awas Yojana.
o Launch of Prime Minister’s Development Initiative for North East Region (PMDevINE).
 This is to fund infrastructure and social development projects in the North-
East.
 An initial allocation of Rs. 1,500 crore was made to enable livelihood activities
for youth and women under the scheme.

o Under Vibrant Villages Programme, Border villages with sparse population, limited
connectivity and infrastructure will be covered for their development.
 The activities will include construction of village infrastructure, housing, tourist
centres, road connectivity, provisioning of decentralised renewable energy, and
educational channels, and support for livelihood generation.
o Digital Banking
 It has been proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of
the country by Scheduled Commercial Banks.
o Continuous of Digital Payment Ecosystem
 The financial support for the digital payment ecosystem announced in the
previous Budget will continue in 2022-23.
o In 2022, 100% post offices will come on the core banking system.
 This will enable financial inclusion and access to accounts through net banking,
mobile banking, ATMs, and also provides online transfer of funds between post
office accounts and bank accounts.

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 Productivity Enhancement& Investment, Sunrise Opportunities, Energy Transition, and
Climate Action
Productivity Enhancement & Investment
 Ease of Doing Business 2.0 -It envisages Trust based governance. It also includes:
o A single point access for all citizen-centric services, and a standardization and removal
of overlapping compliances by integration of central and state level systems through IT
bridges,
o Expanding scope of PARIVESH Portal- will enable application for all four approvals
through a single form, and tracking of the process through Centralized Processing
Centre-Green (CPC-Green).
o Unique Land Parcel Identification Number for IT based management of land records.
o ‘One-Nation One-Registration Software’:Promotion of adoption or linkage with
National Generic Document Registration System (NGDRS) with the ‘One-Nation One-
Registration Software’ as an option for uniform process for registration and ‘anywhere
registration’ of deeds & documents.
o Center for Processing Accelerated Corporate Exit (C-PACE): Establishing C-PACE to
facilitate voluntary winding up of companies
o End to end online e-Bill System and utilising surety bonds in government procurement.
 It will enable the suppliers and contractors to submit online their digitally signed
bills and claims and track their status from anywhere
o Amendments in the Insolvency and Bankruptcy Code to enhance the efficacy of the
resolution process and facilitate cross border insolvency resolution.
o AVGC Promotion Task Force:Setting up Animation, visual effects, gaming, and comic
(AVCG) promotion task force to build domestic capacity for serving our markets and the
global demand
o Support to 5G under PLI scheme; the contracts for laying optical fibre in all villages,
including remote areas, will be awarded under the Bharatnet project through PPP.
o Export Promotion: The Special Economic Zones Act will be replaced with a new
legislation that will enable the states to become partners in ‘Development of Enterprise
and Service Hubs’.
 This will cover all large existing and new industrial enclaves to optimally utilise
available infrastructure and enhance competitiveness of exports.
o AtmaNirbharta in Defense:
 To reduce imports and promote AtmaNirbharta in equipment for the Armed
Forces, 68% of the capital procurement budget will be earmarked for domestic
industry.
 Opening up defence R&D for industry, start-ups and academia.
 Private industry will be encouraged to take up design and development of
military platforms and equipment in collaboration with DRDO and other
organizations through SPV model.

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  An independent nodal umbrella body will be set up for meeting wide
ranging testing and certification requirements.
 Ease of Living
o e-Passport: The issuance of e-Passports using embedded chip and futuristic technology
will be rolled out in 2022-23
 This is to enhance convenience for the citizens in their overseas travel.
o Modernisation of building byelaws, implementing Town Planning Schemes and Transit
Oriented Development.
 It will facilitate reforms for people to live and work closer to mass transit systems
o Establishing Centres of Excellence in urban planning to make recommendations on
urban sector policies, capacity building, planning, implementation and governance.
Sunrise Opportunities
 Artificial Intelligence, Geospatial Systems and Drones, Semiconductor and its eco-system,
Space Economy, Genomics and Pharmaceuticals, Green Energy, and Clean Mobility Systems
have immense potential to assist sustainable development at scale and modernize the country.
o It will provide employment opportunities for youth, and make Indian industry more
efficient and competitive.
o Governments guiding approach in promotion of these Sunrise Opportunities will be
Supportive policies, light-touch regulations, facilitative actions to build domestic
capacities, and promotion of research & development
o For R&D in these sunrise opportunities, in addition to efforts of collaboration among
academia, industry and public institutions, government contribution will be provided
Energy Transition and Climate Action
 Solar Power:
o An additional allocation will be made of Rs 19,500 crore for Production Linked Incentive
for manufacture of high efficiency modules.
 This is to facilitate domestic manufacturing for the ambitious goal of 280 GW of
installed solar capacity by 2030,
 Circular Economy:
o The Circular Economy transition is expected to help in productivity enhancement as well
as creating large opportunities for new businesses and jobs.
o The action plans for ten sectors such as electronic waste, end-of-life vehicles, used oil
waste, and toxic & hazardous industrial waste are ready.
 Transition to Carbon Neutral Economy:
o Five to seven per cent biomass pellets will be co-fired in thermal power plants resulting
in CO2 savings of 38 MMT annually.
 It will also provide extra income to farmers and job opportunities to locals
and help avoid stubble burning in agriculture fields.
 Coal:Setting up of four pilot projects for coal gasification and conversion of coal into chemicals
required for the coal industry to evolve technical and financial viability.
 Agro-forestry: Financial support to farmers belonging to Scheduled Castes and Scheduled
Tribes, who want to take up agro-forestry.

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 Financing Of Investment
 Public Capital Investment
o Outlay
for capital
expenditure stepped
up sharply by 35.4%
to Rs. 7.50 lakh crore
in 2022-23 in
comparison to the
current year. Outlay
in 2022-23 to
be 2.9% of GDP.

o The ‘Effective Capital Expenditure’ of the Central Government is estimated at 10.68

lakh crore in 2022-23, which will be about 4.1% of GDP.

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  As a part of the government’s overall market borrowings in 2022-23, Sovereign Green
Bonds will be issued for mobilizing resources for green infrastructure.
 GIFT-IFSC:
o World-class foreign universities and institutions will be allowed in the Gujarat
International Finance Tec-City (GIFT City).
 This institution will offer courses in Financial Management, FinTech, Science,
Technology, Engineering and Mathematics free from domestic regulations,
except those by International Financial Services Centre Authority (IFSCA) to
facilitate availability of high-end human resources for financial services and
technology.
o An International Arbitration Centre will be set up in the GIFT City for timely settlement
of disputes under international jurisprudence.
o Services for global capital for sustainable & climate finance in the country will be
facilitated in the GIFT City.
 Inclusion in harmonised list of infrastructure
o Data Centers and Energy Storage Systems including dense charging infrastructure and
grid-scale battery systems will be included in the harmonized list of infrastructure.
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  The government will form an expert panel to encourage venture capital and private
equity investments.
o Last year, Venture Capital and Private Equity invested more than 5.5 lakh crore
facilitating one of the largest start-up and growth ecosystems.
 Blended Finance
o For encouraging important sunrise sectors such as Climate Action, Deep-Tech, Digital
Economy, Pharma and Agri-Tech, the government will promote thematic funds for
blended finance.
 This envisages government share being limited to 20% and the funds being
managed by private fund managers.
o Government backed Funds National Investment and Infrastructure Fund (NIIF) and
SIDBI Fund of Fundshas provided scale capital creating a multiplier effect.
 Introduction of Digital Rupee
o Government will introduce central bank digital currency (Digital Rupee), using block
chain and other technologies, to be issued by the Reserve Bank of India starting 2022-
23.
 It is a digital form of fiat currency that can be transacted using wallets backed
by blockchain and is regulated by the central bank.
o Any income from transfer of digital assets will be taxed at 30% rate.

 This will impact gains

from crypto currency
and NFTs as well,
which have seen a
boom in India in
recent times.
 Financial Assistance to States
o The outlay for the ‘Scheme
for Financial Assistance to
States for Capital
Investment’ is being
enhanced from Rs. 10,000
crore in Budget Estimates
2021-22 to Rs. 15,000 crore
in Revised Estimates 2021-22.
o For 2022-23, the allocation
is 1 lakh crore to assist the
states in catalyzing overall
investments in the economy.
 This allocation will be used for PM GatiShakti related and other productive
capital investment of the states.

 In 2022-23, in accordance with the recommendations of the 15th Finance Commission.

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 o The states will be allowed a fiscal deficit of 4% of GSDP of which 0.5% will be
tied to power sector reforms.

Tax Proposals(Direct/Indirect) in the Budget 2022-23

DIRECT TAXES
Taking forward the policy of stable and predictable tax regime
 Vision to establish a trustworthy tax regime.
 To further simplify tax system and reduce litigation.
Introducing new ‘Updated return’
 Provision to file an Updated Return on payment of additional tax.
o This will enable the assessee to declare income missed out earlier.
 Now return can be filed within two years from the end of the relevant assessment year.
Cooperative societies
 Alternate Minimum Tax paid by cooperatives brought down from 18.5% to 15%.
o This to provide a level playing field between cooperative societies and companies.
 Surcharge on cooperative societies reduced from 12% to 7% for those having total income of
more than Rs 1 crore and up to Rs 10 crores.
Tax relief to persons with disability
 Payment of annuity and lump sum amount from insurance scheme to be allowed to differently
abled dependent during the lifetime of parents/guardians, i.e., on parents/ guardian attaining
the age of 60 years.
Parity in National Pension Scheme Contribution
 Tax deduction limit increased from 10% to 14% on employer’s contribution to the NPS account
of State Government employees.

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 o This will bring them at par with central government employees and will help in
enhancing social security benefits.
Incentives for Start-ups
 Period of incorporation extended by one year, up to 31.03.2023 for eligible start-ups to avail
tax benefit.
o Previously the period of incorporation valid up to 31.03.2022.
Incentives under concessional tax regime
 Last date for commencement of manufacturing or production under section 115BAB extended
by one year from 31st March, 2023 to 31st March, 2024.
Scheme for taxation of virtual digital assets
 Specific tax regime for virtual digital assets introduced.
 Any income from transfer of any virtual digital asset to be taxed at the rate of 30%.
 No deduction in respect of any expenditure or allowance to be allowed while computing such
income except cost of acquisition.
 Loss from transfer of virtual digital asset cannot be set off against any other income.
 To capture the transaction details, TDS to be provided on payment made in relation to
transfer of virtual digital asset at the rate of 1% of such consideration above a monetary
threshold.
 Gift of virtual digital asset also to be taxed in the hands of the recipient.

Litigation Management
 In cases where question of law is identical to the one pending in High Court or Supreme Court,
the filing of appeal by the department shall be deferred till such question of law is decided by
the court.
o This will greatly help in reducing repeated litigation between taxpayers and the
department.
Tax incentives to IFSC
 Subject to specified conditions, the following to be exempt from tax
o Income of a non-resident from offshore derivative instruments.
o Income from over the counter derivatives issued by an offshore banking unit.
o Income from royalty and interest on account of lease of ship.
o Income received from portfolio management services in IFSC.
Rationalization of Surcharge
o Surcharge on Association of Persons (AOP’s) (consortium formed to execute a contract)
capped at 15%.
 This is done to reduce the disparity in surcharge between individual companies
and AOPs.
o Surcharge on long term capital gains arising on transfer of any type of assets capped
at 15%.
 This has been done to give a boost to the start up community.
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 Health and Education Cess
 Any surcharge or cess on income and profits not allowable as business expenditure.
Deterrence against tax-evasion
 No set off, of any loss to be allowed against undisclosed income detected during search and
survey operations.
Rationalizing Tax Deducted at Source (TDS) Provisions
 Now, benefits passed on to agents as business promotion strategy taxable in hands of agents.
 Tax deduction will be provided to person giving benefits, if the aggregate value of such
benefits exceeds Rs 20,000 during the financial year.
INDIRECT TAXES
Remarkable progress in GST
 GST revenues are buoyant despite the pandemic.
Special Economic Zones
 Customs Administration of SEZs to be fully IT driven and function on the Customs National
Portal shall be implemented by 30th September 2022.
Customs Reforms and duty rate changes
 Faceless Customs has been fully established.
o During Covid-19 pandemic, Customs formations have done exceptional frontline work
against all odds displaying agility and purpose.
Project imports and capital goods
 Gradually phasing out of the concessional rates in capital goods and project imports; and
applying a moderate tariff of 7.5%.
 Certain exemptions for advanced machineries that are not manufactured within the country
shall continue.
 A few exemptions introduced on inputs, like specialised castings, ball screw and linear motion
guide to encourage domestic manufacturing of capital goods.
Review of customs exemptions and tariff simplification
 More than 350 exemption entries proposed to be gradually phased out, like exemption on
certain agricultural produce, chemicals, fabrics, etc. for which sufficient domestic capacity
exists.
 Simplifying the Customs rate and tariff structure particularly for sectors like chemicals, textiles
and metals and minimise disputes.
 Removal of exemption on items which are or can be manufactured in India and providing
concessional duties on raw material that go into manufacturing of intermediate products.
Sector specific proposals
Electronics
 Customs duty rates to be calibrated to provide a graded rate structure to facilitate domestic
manufacturing of wearable devices, hearable devices and electronic smart meters.
 Duty concessions to parts of transformer of mobile phone chargers and camera lens of mobile
camera module and certain other items – To enable domestic manufacturing of high growth
electronic items.
Gems and Jewellery
 Customs duty on cut and polished diamonds and gemstones being reduced to 5%.
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 o While nil customs duty will be there for simply sawn diamond to give a boost to
the Gems and Jewellery sector.
 A simplified regulatory framework to be implemented by June this year.
o This is to facilitate export of jewellery through e-commerce.
 Customs duty of at least Rs 400 per Kg to be paid on imitation jewellery import.
o This is to disincentives import of undervalued imitation jewellery.
Chemicals
 Customs duty on certain critical chemicals namely methanol, acetic acid and heavy feed stocks
for petroleum refining being reduced.
o Duty is being raised on sodium cyanide for which adequate domestic capacity exists –
This will help in enhancing domestic value addition.
MSME Sector
 Customs duty on umbrellas being raised to 20%.
o Exemption to parts of umbrellas being withdrawn.
 Exemption being rationalised on implements and tools for agri-sector which are
manufactured in India
 Customs duty exemption given to steel scrap last year extended for another year to provide
relief to MSME secondary steel producers
 Certain Anti- dumping and CVD on stainless steel and coated steel flat products, bars of alloy
steel and high-speed steel are being revoked – to tackle prevailing high prices of metal in larger
public interest.
Export Sector

 To incentivise exports, exemptions being provided on items such as embellishment, trimming,

fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging
boxes.
 Duty being reduced on certain inputs required for shrimp aquaculture to promote its exports.
Tariff measure to encourage blending of fuel
o Unblended fuel to attract an additional differential excise duty of Rs 2/ litre from the
1st of October 2022 - to encourage blending of fuel.

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 Revenue and Capital Receipts/ Expenditure Budget Estimates2022-23

Abbreviations Used:
BE: Budget Estimates, RE: Revised
Estimates, AE: Actual Estimates

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20 | P a g e Q U E R Y ? H E L L O @ E D U T A P . C O . I N / 8 1 4 6 2 0 7 2 4 1
 Proposed Rupee Income and Expenditure

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 Key Schemes Highlighted in the Budget
1.1 Pradhan Mantri Gati Shakti Scheme
Scheme Summary
Launch Year 2021
Aim To ensure integrated planning and implementation of infrastructure projects in
the next four years, with focus on expediting works on the ground, saving costs
and creating jobs.
Objective  To achieve seamless multimodal connectivity for facilitating easy movement
of goods & people.
 To achieve improved prioritisation, optimal usage of resources, timely
creation of capacities.
 To achieve resolution of issues like disjointed planning, standardisation&
clearances.
 To enhance trade by expanding cargo handling capacity and shortening port
turnaround times.
Duration 4 years
Key Features  GatiShaktiDigital Platform - will bring 16 Ministries and 7 core infrastructure
sectors together for integrated planning and coordinated implementation of
infrastructure connectivity projects through real-time coordination between
various ministries/departments.
 The National Master Plan will also aid concerned Ministries/Departments to
prioritize connectivity enhancements for ensuring last mile connectivity to
economic zones in a defined time frame.
 It is a ₹100 lakh crore national infrastructure master plan for developing
‘holistic infrastructure and give an integrated pathway to the Indian economy.
o It will subsume the National Infrastructure Pipeline (NIP) initiative.
 Multimodal connectivity of various economic hubs with roads, ports and
airports will be part of the Gati Shakti masterplan, which will provide
manufacturers faster access to domestic and international markets.
 It will ensure that various economic hubs are able to better utilise the
investments in the sector being done by the government and private players.
 The projects will be designed and executed with a common vision and will
incorporate the infrastructure schemes of various ministries and state
governments.
 A GIS based ERP system, will be developed in collaboration with BISAG-N
(Bhaskaracharya National Institute for Space Applications and Geo-
informatics).
o It will enable all stakeholders and the Network Planning Group
consisting of Infrastructure connectivity Ministries in spatial planning,
evidence-based decision-making, administration and effective
monitoring of the Master Plan on a periodic and real time basis.
 The portal will offer 200 layers of geospatial data, including on existing
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 infrastructure such as roads, highways, railways, and toll plazas, as well as
geographic information about forests, rivers and district boundaries to aid in
planning and obtaining clearances.
 It plans to establish 11 industrial corridors and two new defense corridors in
Tamil Nadu and Uttar Pradesh.
o It will also help in extending 4G connectivity to all villages and
expansion of the gas pipeline network by 17,000 kilometers is
envisaged.
Implementation  Empowered Group of Secretaries (EGOS) will be headed by Cabinet Secretary
Framework and will consist of Secretaries of 18 ministries as members and Head of
Logistics Division as Member Convenor.
o The EGOS has been mandated to review and monitor implementation
of the PM GatiShakti NMP to ensure logistics efficiency
 Network Planning Group (NPG) – It will consist of heads of Network Planning
wing of respective infrastructure ministries and it will assist EGOS.
 Technical Support Unit (TSU) – It will have domain experts from various
infrastructure sectors.
Pillars  Comprehensiveness
 Prioritization
 Dynamic
 Optimization
 Analytical
 Synchronization
Benefits  It will boost economic growth, attracting foreign investments and enhance the
country’s global competitiveness there by enabling smooth transportation of
goods, people and services and creating employment opportunities.
 It will also aim to make Indian products more competitive by cutting down
their logistics costs and improving supply chains.
 It will lead to the local manufacturers of India in turning globally competitive.

1.2 Bharat Net Project

Scheme Summary
Launch Year 2011
 Earlier, the name of the scheme is National Optical Fibre Network (NOFN)
which was launched in October 2011.
 It was renamed as Bharat Net in 2015.
Nodal Ministry Ministry of Communications
Aim To connect all the 2,50,000 Gram Panchayats in the country for providing
broadband connectivity in the Gram Panchayats
Objectives  To extend the existing optical fibre network up to Panchayat level.
 The government had planned to make this network available to telecom
service provides and as a highway for transmission of voice, data and video in

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 rural areas.
Funding  Bharat Net is being funded through Universal Service Obligation Fund (USOF).
 The Universal Service Obligation Fund (USOF) was established with the
fundamental objective of providing access to ‘Basic’ telegraph services to
people in the rural and remote areas at affordable and reasonable prices.
 Subsequently the scope was widened to provide subsidy support for enabling
access to all types of telegraph services including mobile services, broadband
connectivity and creation of infrastructure like OFC in rural and remote areas.
Key Features  The project will be extended to all inhabited villages beyond the gram
panchayats in 16 States which are:
o Kerala, Karnataka, Rajasthan, Himachal Pradesh, Punjab, Haryana, Uttar
Pradesh, Madhya Pradesh, West Bengal, Assam, Meghalaya, Manipur,
Mizoram, Tripura, Nagaland and Arunachal Pradesh.
 The revised strategy will include creation, upgrading, operation, maintenance
and utilisation of BharatNet by the private sector partner, who will be
selected by a competitive international bidding process.
 Three Phases of Implementation:
o The first phase envisages providing one lakh gram panchayatswith
broadband connectivity by laying underground optic fibre cable (OFC)
lines by December 2017.
o The second phase will provide connectivity to all 2,50,000-gram
panchayats in the country using an optimal mix of underground fiber,
fiber over power lines, radio and satellite media. It is to be completed
by March 2019.
o In the third phase from 2019 to 2023, state-of-the-art, future-proof
network, including fiber between districts and blocks, with ring
topology to provide redundancy would be created.

1.3 National Health Mission (NHM)

Scheme Summary
Launch Year 2005
Nodal Ministry of Health and Family Welfare
Ministry
Aim Attainment of universal access to equitable, affordable and quality health care
services, accountable and responsive to people’s needs, with effective inter-
sectoral convergent action to address the wider social determinants of health.
Key  Health Systems Strengthening including infrastructure, human resource, drugs
Components & equipment, ambulances, MMUs, ASHAs etc.
 Reproductive, Maternal, Newborn, Child and Adolescent Health
Services (RMNCH + A).
 Communicable Disease Control Programmes.
 Non-Communicable Diseases Control Programme interventions.

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  Infrastructure Maintenance- to support salary of ANMs and LHVs etc
Goals  Reduce MMR to 1/1000 live births
 Reduce IMR to 25/1000 live births
 Reduce TFR to 2.1
 Prevention and reduction of anemia in women aged 15–49 years
 Prevent and reduce mortality & morbidity from communicable, non-
communicable; injuries and emerging diseases
 Reduce household out-of-pocket expenditure on total health care expenditure
 Reduce annual incidence and mortality from Tuberculosis by half
 Reduce the prevalence of Leprosy to <1/10000 population and incidence to zero
in all districts
 Annual Malaria Incidence to be <1/1000
 Less than 1 percent microfilaria prevalence in all districts
 Kala-azar Elimination by 2015, <1 case per 10000 population in all blocks
Sub- Schemes  National Rural Health Mission
 National Urban Health Mission

1.4 Pradhan Mantri Awas Yojana Urban (PMAY-U)

Scheme Summary
Launch Year 2015
Nodal Ministry of Housing and Urban Affairs
Ministry
Aim To Achieve housing for all by 2022
Eligibility  The beneficiary family should not own a pucca house and have not availed of
Criteria central assistance/benefit under any housing scheme.
 Married couple will be eligible for a single subsidy.
Target Economically weaker section (EWS) (Upto 3Lakh), low-income groups (LIGs) (3-6
Beneficiaries Lakh) and Middle-Income Groups (MIGs) (6-18 Lakh Income).
Coverage All 4041 statutory towns as per Census 2011 with focus on 500 Class I cities.
Financing It is being implemented as a Centrally Sponsored Scheme except for the Credit
Linked Subsidy component which is a Central Sector Scheme.
Components (i) In-Situ Rehabilitation of Slum Dwellers: Central grant of ₹1 lakh per house.
(ii) Affordable Housing in Partnership: provide financial assistance to EWS houses
being built with different partnerships by States/UTs/Cities.
 Central Assistance at the rate of ₹1.5 lakhs per EWS house.
(iii) Credit Linked Subsidy Scheme:
 Beneficiaries seeking housing loans would be eligible for an interest subsidy and
the maximum tenure of loan is 20 years.
 The interest subsidy is different for different category – 6.5% for EWS and LIG,
4% for MIG I and 3% for MIG-II category.
(iv) Beneficiary Led Individual House Construction/Enhancement:
 Assistance to EWS categories to either construct new houses or enhance
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 existing houses and may avail of central assistance of ₹1.5 lakh.

1.5 Jal Jeevan Mission

Scheme Summary
Launch Year 2019
Nodal Ministry Ministry of Jal Shakti
Objective To provide safe and adequate drinking water through individual household tap
connections by 2024 to all households in rural India.
Funding Pattern  Total estimated cost of JJM is ₹3.60 Lakh Crore.
 The fund sharing pattern between Centre and State is 90:10 for Himalayan
(Uttarakhand, Himachal Pradesh) and North-Eastern States, 100:0 for
UTsand50:50 for rest of the States.
Institutional For the implementation of JJM, following institutional arrangement has been
Framework proposed:
 National JalJeevan Mission (NJJM) at the Central level.
 State Water and Sanitation Mission (SWSM) at the State level.
 District Water and Sanitation Mission (DWSM) at the District level.
 Village Water Sanitation Committee (VWSC) at Village level.
Key Features  Government of India has restructured and subsumed the ongoing National
Rural Drinking Water Programme (NRDWP) into JalJeevan Mission (JJM).
 Provide potable water at service level of 55 litre per capita per day through
Functional Household Tap Connections (FHTC) by 2024.
 Special focus is on women and children.
 Every village will prepare a Village Action Plan (VAP) which will have three
components:
o Water source & its maintenance, Water supply and Greywater
(domestic wastewater) management.
 The community has to contribute 5% or 10% of capital cost for in-village
infrastructure as the case may be, in cash/ kind/ and/ or labour

1.6 Pradhan Mantri Gram Sadak Yojana

Scheme Summary
Launch Year 2000
Nodal Ministry Ministry of Rural Development
Aim To provide good all-weather road connectivity to unconnected villages
Objectives  To provide connectivity, by way of an all-weather road (which is operable
throughout the year), to the eligible unconnected Habitations in the rural
areas with a population of 500 persons and above in Plain areas.
 In respect of the Hill States (North-East, Sikkim, Himachal Pradesh, Jammu &
Kashmir and Uttarakhand), the Desert Areas, the Tribal areas and the objective
would be to connect eligible unconnected habitations with a population of 250
persons and above.
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 Key Features  The World Bank has supported PMGSY since its inception.
 The unit for this Programme is a Habitation and not a Revenue village or a
Panchayat. A Habitation is a cluster of population, living in an area, the
location of which does not change over time.
 The PMGSY shall cover only the rural areas. Urban roads are excluded from the
purview of this Programme.
 PMGSY envisages only single roadConnectivity to be provided.
 If a Habitation is already connected by way of an All-weather road, then no
new work can be taken up under the PMGSY for that habitation.
 PMGSY does not permit repairs to Black-topped or Cement Roads, even if the
surface condition is bad.
 The main features of PMGSY are –
o decentralized and evidence based planning, standards and specifications as
per Indian Road Congress (IRC) and Rural Roads Manual,
o dedicated implementation mechanism at central, state and district level,
o scrutiny of Detailed Project Reports (DPRs) at multiple levels,
o strong IT backbone for monitoring and implementation of the programme,
three-tier quality management system,
o unbroken flow of funds,
o inbuiltmechanism for consultation with public representatives at planning,
selection of roads and monitoring stages, etc.
 PMGSY-II, which was approved by the Cabinet in May, 2013, envisaged
consolidation of 50,000 Km of existing rural road network.
 The PMGSY-III was launched in the year 2019 for consolidation of 1,25,000 Km
existing Through routes and Major rural links connecting habitations, inter-alia,
to Gramin Agricultural Markets, Higher Secondary Schools and Hospitals and
the implementation period of the scheme is upto March, 2025.

1.7 PM Kisan Samman Nidhi

Scheme Summary
Launch Year 2019, Effective from 2018
Nodal Ministry Ministry of Agriculture & Farmer’s Welfare
Aim To benefit 14.5 crore beneficiaries on the basis of the Agriculture Census, 2015-16
Objective To provide income support to all eligible land-holding farmers and their families.
Scheme Type Central Sector Scheme
Eligibility  All farmer families in the country irrespective of the size of their landholdings.
 Family comprises of husband, wife and minor children who own cultivable land
as per land records of the concerned State/UT.
 Exclusion: Institutional landholders, Present or retired officers and employees
of state/central government as well as PSUs and government autonomous
bodies, Beneficiaries with higher economic status are not eligible, Income tax
payee, Farmer families holding constitutional posts, Professionals like doctors,

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 engineers and lawyers, Retired pensioners with a monthly pension of over
Rs10,000.
Key Features  An amount of Rs6000 per year in three equal installments of Rs2,000 each
every four months is released by the Central Government online directly into
the bank accounts of the eligible farmers.
 The entire responsibility of identification of beneficiary farmer families’ rests
with the State / UT Governments.
 Under the Scheme, funds are not allocated and sanctioned State-wise.

1.8 Atmanirbhar Bharat Rojgar Yojana (ABRY)

Scheme Summary
Launch Year 2020
Nodal Ministry Ministry of Labour and Employment
Objective To boost employment in formal sector and incentivize creation of new
employment opportunities during the Covid recovery phase under Atmanirbhar
Bharat Package 3.0
Tenure Operational for the period 2020-2023.
Beneficiaries  An employee drawing monthly wage of less than Rs. 15000/-
 Any EPF member who made exit from employment during Covid pandemic.
Targeted Establishments registered with EPFO if they add new employees compared to
Establishment employees as in September 2020 as under:
 Minimum of two new employees if reference base is 50 employees or less.
 Minimum of five new employees if reference base is more than 50 employees
Key Features  The scope of the scheme i.e. last date for registration of new employees under
the scheme has been extended from 30th June 2021 to 31st march 2022.
 Central Govt. will provide subsidy for two years in respect of new eligible
employees engaged on or after 1st October 2020 at following scale:
o Establishments employing up to 1000 employees: Employee’s contributions
(12% of Wages) & Employer’s contributions (12% of wages) totaling 24% of
wages
o Establishments employing more than 1000 employees: Only Employee’s
EPF contributions (12% of EPF wages)

1.9 Emergency Credit Line Guarantee Scheme

Scheme Summary
Launch Year 2020
Nodal Ministry Ministry of Finance
Objective To provide fully guaranteed and collateral free additional credit to MSMEs,
business enterprises, MUDRA borrowers and individual loans for business
purposes to the extent of 20% of their credit outstanding as on 29th February
2020.
Tenure  31st March 2021or till guarantees for an amount of Rs3,00,000crore is

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 sanctioned.
 Later, extended till 31st March 2022 or till guarantees ofRs4.5 lakh croreare
issued.
 Now, extended up to March 2023.
 Guarantee cover under ECLGS to be expanded by Rs. 50,000 Crore to total
cover of Rs. 5 Lakh Crore
Eligibility  For ECLGS 1.0, MSME units, Business Enterprises, Mudra Borrower and
Criteria individual loans for business purpose having loan outstanding upto₹50 crore
and days past due upto 60 days as on 29.02.2020.
 For ECLGS 2.0, Borrower belonging to 26 stressed sectors identified by Kamath
Committee & Healthcare sector having loan outstanding above ₹50 crore and
upto₹500 crore and days past due upto 60 days as on 29.02.2020.
 For ECLGS 3.0, Borrower belonging to Hospitality, Travel & Tourism, Leisure &
Sporting and Civil Aviation sector having days past upto 60 days as on
29.02.2020.
 For ECLGS 4.0, Existing Hospitals/Nursing Homes/Clinics/ Medical Colleges/
units engaged in manufacturing of liquid oxygen, oxygen cylinders etc. having
credit facility with a lending institution with days past due upto 90 days as on
March 31, 2021.
Total Corpus Rs41,600 crore with additional funding of up to Rs3 lakh crores, which has been
extended by Rs1.5 lakh crore to a total of Rs4.5 lakh crore.
Key Features  Scheme was launched as part of the Aatmanirbhar Bharat Abhiyan package to
mitigate the distress caused by coronavirus-induced lockdown.
 100% guarantee coverage is being provided by the National Credit Guarantee
Trustee Company.
 Tenor of loans provided under the Scheme is five years, including a
moratorium of one year on principal repayment.
 Interest rates under the Scheme are capped at 9.25% for Banks and Financial
Institutions (FIs), and 14% for NBFCs.

1.10 Mission Poshan 2.0

Scheme Summary
Launch Year 2021
Nodal Min. Ministry of Women and Child Development
Key Features  It is an umbrella scheme covering –
o Integrated Child Development Services (ICDS)
o Anganwadi Services
o PoshanAbhiyaan
o Scheme for Adolescent Girls
o National Creche Scheme.
 It was announced in Union Budget 2021-22 by merging supplementary nutrition
programmes and the POSHAN Abhiyaan.

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  Prioritizing 112 aspirational districts, this mission will develop practices that will
nurture health, wellness and immunity of children and pregnant women thereby
making a concerted effort towards eradicating malnutrition from its roots.
Budget Estimates 2022-23 for Governments Schemes

Core Scheme Gets Higher Funding

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 Scheme Budget Estimates 2022-23 (In Rs.
Crores)
Centrally Sponsored Schemes (CSS)
Core of the Core Schemes
National Social Assistance Program 9,652
Mahatma Gandhi National Rural Employment Guarantee 73,000
Program
Umbrella Scheme for Development of Schedule Castes 8,710
Umbrella Programme for Development of Scheduled Tribes 4,111
Umbrella Programme for Development of Minorities 1,810
Umbrella Programme for Development of Other Vulnerable 1,931
Groups
Core Schemes
Pradhan Mantri Jan Arogya Yojana (RSBY) 7,857
Krishonnati Yojana 7,183
Blue Revolution 1,891
Pradhan Mantri Krishi SinchaiYojna (PMKSY) 12,954
Rashtriya Krishi Vikas Yojana 10,433
Pradhan Mantri Gram Sadak Yojna (PMGSY) 19,000
Pradhan Mantri Awas Yojna (PMAY) 48,000
Jal Jeevan Mission 60,000
Swachh Bharat Mission 2,300
Swachh Bharat Mission (Gramin) 7,192
National Health Mission 37,800
National Education Mission 39,553
PM POSHAN (Poshan Shakti Nirman) 10,234
Saksham Anganwadi and Poshan2.0 (Umbrella ICDS-Anganwadi 20,263
Services, Poshan Abhiyan, Scheme for Adolescent Girls)
Mission Shakti 3,184
Pradhan Mantri Ayushman Bharat Health Infrastructure 4,177
Mission (PMABHIM)
Mission VATSALYA 1,472
National Livelihood Mission – Ajeevika 14,236
Jobs and Skill Development 2,688
Environment, Forestry and Wildlife 930
Urban Rejuvenation Mission: AMRUT and Smart Cities Mission 14,100
Modernization of Police Forces 2,754
Infrastructure Facilities for Judiciary 858
Border Area Development Programme 566
Shyama Prasad Mukherjee Rurban Mission 550
Rashtriya Gram Swaraj Abhiyan (RGSA) 663
Prime Minister Formalization of Micro Food Processing 900
Enterprises Scheme(PM-FME)

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 Major Central Sector Scheme Budget Estimates 2022-23 (In Rs. Crores)
Market Intervention Scheme and Price Support 1,500
Scheme (MIS-PSS)
Production Linked Incentive Schemes 1,629
Regional Connectivity Scheme 601
Pradhan Mantri Kisan SammanNidhi (PM-Kisan) 68,000
Aatmanirbhar Bharat Rojgar Yojana 6,400
Pradhan Mantri Kisan Sampada Yojana 900
Pardhan Mantri Swasthya Suraksha Yojana 10,000
Crop Insurance Scheme 15,500
Production Linked Incentive (PLI) Scheme to 528
Promote Telecom and Networking Products
Manufacturing in India
Deep Ocean Mission 650
Prime Minister Employment Generation Programme 2,500
(PMEGP)
Kisan Urja Suraksha evam Utthaan Mahabhiyan 1,716
PLI for Large Scale Electronics and IT Hardware 5,300
Integrated Development of Tourist Circuits around 1,181
specific themes(Swadesh Darshan)
Production Linked Incentive Scheme for Food 1,022
Processing Industry
Scheme for Faster Adoption and Manufacturing of 2,908
(Hybrid and) Electric Vehicle in India-(FAME - India)
Eklavya Model Residential School 2,000
Khelo India 974
Atal Bhujal Yojna 700
Livestock Health and Disease Control Programme 2,000
Price Stabilisation Fund 1,500
Employees Pension Scheme, 1995 8,485
Interest Equalisation Scheme 2,622
Recapitalization of Regional Rural Banks (RRBs) 1,361
Member of Parliament Local Area Development 3,965
Scheme (MPLAD)
Amended Technology Upgradation Fund 650
Scheme(ATUFS)
National Investment and Infrastructure Fund (NIIF) 5,003
National Ganga Plan 2,800
North East Special Infrastructure Development 1,419
Scheme (NESIDS)
Guarantee Emergency Credit Line (GECL) facility to 15,000
eligible MSME borrowers
Urea Subsidy 63,222
Nutrient Based Subsidy 42,000

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 Key Words Used in the Budget Summary Document 2022-23

 Gross Domestic Product (GDP)

o It is the total monetary or market value of all the finished goods and services
produced within a country’s borders in a specific time period.
 GDP differs from GNP, which includes all final goods and services produced by
resources owned by that country’s residents, whether located in the country or
elsewhere.
o As a broad measure of overall domestic production, it functions as a comprehensive
scorecard of a given country’s economic health.
 Gross Value Added (GVA)
o It is the measure of the value of goods and services produced in an area, industry or
sector of an economy.
 Gross value added is the value of goods and services output minus the value of
intermediate consumption; it is a measure of the contribution to GDP made by
an individual producer, industry or sector
 Gross State Domestic Product (GSDP)
o It is the sum total of value added by different economic sectors (Agriculture, Industry &
Services) produced within the boundaries of the state calculated without duplication
during a year.
o It is one of the measures of economic growth for a state's economy.
 Revenue Budget
o Revenue budget is a statement of the government’s estimated revenue receipts and
revenue expenditure for a period of one financial year.
o Revenue budget covers revenue items which are of recurring nature and
are nonredeemable.
o Revenue Budget has two components:
 Revenue receipt and Revenue expenditure.
o Revenue Receipt
 It includes both tax revenue like income tax, excise duty and non-tax
revenue like interest receipts, profits.
o Revenue Expenditure
 It is expenditure for normal running of the government department and various
services, interest charges on debt incurred by government, subsidies etc.
 Capital Budget
o Capital budget is a statement of the government’s estimated capital receipts and capital
expenditure for a period of one financial year.
o Capital budget covers capital items which are of non-recurring nature.
o Capital Budget has two components:
 Capital receipt and Capital expenditure.
o Capital Receipt
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  These are the receipts of the government which create liabilities or
reduce financial assets, e.g., market borrowing, recovery of loan, etc.
o Capital Expenditure
 It is the expenditure of the government which either creates assets or reduces
liability like creation of an asset, investment.
 Public Private Partnership (PPP)
o It involve collaboration between a government agency and a private-sector company
 This type of partnership can be used to finance, build, and operate projects,
such as public transportation networks, parks, and convention centers.
o Financing a project through a public-private partnership can allow a project to be
completed sooner or make it a possibility in the first place.
 Fiscal Deficit
o The primary deficit is defined as the difference between current government
spending on goods and services and total current revenue from all types of taxes net
of transfer payments.
 The total deficit which also known as fiscal deficit is the primary deficit plus
interest payments on the debt.
o The government describes fiscal deficit of India as “the excess of total disbursements
from the Consolidated Fund of India, excluding repayment of the debt, over total
receipts into the Fund (excluding the debt receipts) during a financial year.
 Block chain Technology
o A block chain is a distributed database that is shared among the nodes of a computer
network.
 As a database, a block chain stores information electronically in digital format.
o A block chain collects information together in groups, known as blocks, which hold
sets of information.
 Blocks have certain storage capacities and, when filled, are closed and linked to
the previously filled block, forming a chain of data known as the block chain.
 Special Economic Zone (SEZ)
o It is an area in which the business and trade laws are different from the rest of the
country.
o SEZs are located within a country's national borders, and their aims include increasing
trade balance, employment, increased investment, job creation and effective
administration.
o To encourage businesses to set up in the zone, financial policies are introduced.
 These policies typically encompass investing, taxation, trading,
quotas, customs and labour regulations.
 Unified Logistics Interface Platform (ULIP)
o It is a platform designed to enhance efficiency and reduce the cost of logistics in India
by creating a transparent, single window platform that can provide real-time
information to all stakeholders.

34 | P a g e Q U E R Y ? H E L L O @ E D U T A P . C O . I N / 8 1 4 6 2 0 7 2 4 1
  It focuses on visibility of multi-modal transport, and all the existing
systems of various ministries, governing bodies, and private stakeholders should
be integrated on a ULIP system.
 Multimodal Transportation

o It is the transportation of goods under a single contract, but performed with at least
two different modes of transport.
 It involves various transportation modes, such as road, rail, maritime, air, and
pipeline.
 TDS (Tax Deduction at Source)
o In India it is a means of collecting tax on income, dividends, or asset.
o Basically it is income tax reduced from the money paid at the time of making specified
payments such as rent, commission, interest etc. by the persons making such payments.
 Usually, the person receiving income is liable to pay income tax. But the
government with the help of this provision makes sure that income tax is
deducted in advance from the payments being made by you.
 Association of Persons (AOP)
o The Indian Income Tax Act, 1961, defines AOP as an integration of persons for a mutual
benefit or a common purpose.
o They may be individual or artificial persons such as LLP or a company.
 For example, two companies may join together and form an AOP for the
achievement of a common objective.

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