LIVE UPDATES SUMMARY OF UNION BUDGET 2022-23 HIGHLIGHTS OF THE UNION BUDGET 2022-23
Introduction of tax regime important for mainstreaming of digital assets: Abhay Sharma
"Introduction of a tax regime for taxation of digital assets is an important step in mainstreaming of this asset class. It is indicative of an increasing acceptance by the government of digital currencies within the economic framework," Abhay Sharma, Partner, Shardul Amarchand Mangaldas & Co. said.
Budget 2022 Explained: Why FM is pushing for enhanced capex allocation
The government has announced a sharp jump of 35.4 per cent in capital expenditure to fund various infrastructure projects in 2022-23. In her Budget speech, Finance Minister Nirmala Sitharaman said capital investment holds the key to speedy and sustainable revival and public spending is required to take the lead.
The government will invest Rs 7.50 lakh crore as capital expenditure next year, a sharp jump from Rs 5.54 lakh crore in the current year.
Depending upon its implementation, Capex spending will provide a big boost to investment activity and support economic growth in the next year.
Budget focusses on longterm growth support, says expert
Suvodeep Rakshit, a senior economist at Kotak Institutional Equities, reacting to the Budget, said: “The union Budget underlined the government’s focus on longterm growth support. Focus on increasing capital expenditure as well as on future growth drivers, such as clean energy, are the key positives of the budget. The fiscal deficit targets as well as the budgeted receipts and expenditures are in line with our expectations.”
Reduction of surcharge on unlisted shares from 28.5% to 23%
In a move that will ease exits from startups and Unicorns, the Finance Minister announced reduction of surcharge on unlisted shares from 28.5 per cent to 23 per cent.
Launch of own digital currency shows govt not willing to permit cyptos: Sundara Rajan
Reacting after the Budget, Sundara Rajan TK, Partner at DVS Advisors LLP, said: “The clarity on tax of digital assets is long due and was expected to be provided this year. The announcement of tax at 30% on digital asset, coupled with the government launching its own digital currency, is an indication that the government intends to discourage the same and would intend that only the HNIs make such investments and that the government shall not permit cryptos as currency. The caping of surcharge at 15% is welcome and though no separate relief was given to HNIs, this would also be favourable to such HNIs with high capital gains income.”
Digital Rupee to be issued, gains from digital assets to be taxed at 30%`
A new digital rupee powered by blockchain technology will be issued by the Reserve Bank of India starting 2022-23. This was announced by Finance Minister during the Union Budget 2022 today. Blockchain technology also powers cryptocurrency, non-fungible tokens (NFTs) and it is a distributed ledger, updated in real-time. In a blockchain, the transaction records cannot be changed at all and the ledger is transparent and authentic, which is why it is used in cryptocurrency as well.
Sitharaman introduces Finance Bill 2022, Lok Sabha adjourns
Union Finance Minister Nirmala Sitharaman introduced the Finance Bill 2022 in Parliament, following which the Lok Sabha was adjourned till tomorrow.
Customs duty on diamond to be reduced to 5%: Nirmala Sitharaman
Customs on polished diamonds, gemstones cut to 5%. Simply sawn diamonds will be exempted. To facilitate export of jewellery through e-commerce, simplified regulations will be in place by June this year.
Good that taxation of virtual assets is now clearly defined, says Adil Shetty
Adhil Shetty, the CEO of BankBazaar.com, while reacting to the Budget, said: "The taxation of virtual assets is now clearly defined. So, we now at least know what tax filers can expect this year. Individuals might have wanted lower LTCG taxes and and carry forward of losses similar to equity or housing. But this is at least a start."
January gross GST collection highest since inception of tax: FM
The gross GST collections for the month of January 2022 are Rs 1,40,986 crore —the highest since the inception of the tax: Finance Minister Nirmala
Focus on deep tech will give strategic depth to country: PN Sudarshan
PN Sudarshan, Partner and TMT Industry Leader, Deloitte India, said: “Deep tech is an idea whose time has come. All our focus so far has been on the application layer which provided solutions to problems and business opportunities. A focus on deep tech will provide that strategic depth. Wish the government expands and extends this.”
Inclusion of design-led initiatives for 5G in PLI is good step forward: Jaideep Ghosh
Reacting to the Budget, Jaideep Ghosh, COO, Shardul Amarchand Mangaldas & Co, said: “Continued emphasis on the importance of mobile connectivity and broadband for economic development, especially in rural India, will further boost the telecommunication and associated sectors. Inclusion of design-led initiatives for 5G and other technologies in PLI is a good step forward. While an announcement on implementing Bharatnet optical fibre cable contracts through PPP has been made, an expeditious approach is needed to avoid delays given that the PPP model has witnessed mixed experience in other infrastructure sectors.”
LTCG to be taxed at 15%
Income from Long Term Capital Gains will be taxed at 15%, the Finance Minister said.
Corporate surcharge to be reduced from 12% to 7%
Corporate surcharge to be reduced from 12% to 7%, says Finance Minister Nirmala Sitharaman
Income from virtual digital assets to be taxed at 30%
Income from transfer of digital assets to be charged 30% tax, plus 1% tax on transaction: FM
Rs 48,000 crore allocated for completion of construction of 80 lakh houses: FM
Rs 48,000 crores allocated for completion of construction of 80 lakh houses under PM Awas Yojana in rural and urban areas in the year 2022-23: FM Sitharaman
Tax deduction limit to be increased from 10% to 14% for Centre, state govt employees
Both Centre and States govt employees' tax deduction limit to be increased from 10% to 14% to help the social security benefits of state government employees and bring them at par with the Central govt employees: FM Nirmala Sitharaman
Taxpayers can now update I-T returns within 2 years
To provide an opportunity to correct an error, taxpayers can now file an updated return within 2 years from the relevant assessment year: FM Nirmala Sitharaman
Rs 1 lakh crore allocated to states to help investments: FM
For 2022-23, allocation of Rs 1 lakh crore has been made to assist the states in catalysing overall investments in the economy. These 50-year interest-free loans are over and above normal borrowings allowed to states. It'll be used for PM Gati Shakti-related and other productive capital investments of states: FM
Digital rupee to be issued by RBI in the upcoming year: Nirmala Sitharaman
Digital rupee to be issued using blockchain and other technologies and will be issued by RBI starting 2022-23. This will give a big boost to the economy: FM Nirmala Sitharaman
Additional allocation of Rs 19,500 crore for manufacturing solar modules: FM
To facilitate domestic manufacturing of 280 gigawatt of installed solar capacity by 2030, additional allocation of Rs 19,500 crore for PLI for manufacturing of high-efficiency modules with priority to fully integrate manufacturing units to solar PV modules will be made: FM
Capital expenditure to be around Rs 10.68 lakh crore: FM
Effective capital expenditure of the Central government is estimated at Rs 10.68 lakh crore in 2022-23, about 4.1% of GDP: FM Nirmala Sitharaman
Ken Betwa linking project to cost around Rs 44,605 crore: Finance Minister
Implementation of the Ken Betwa Linking project at an estimated cost of Rs 44,605 crore to be taken up with irrigation benefits to 9 lakh hectare farmland, drinking water to 62 lakh people, 103 MW hydropower and 27 MW solar power generation: Nirmala Sitharaman
Spectrum auctions this year to enable 5G roll out by 2023
Required spectrum auctions will be conducted in 2022, to facilitate roll-out of 5G mobile services by private telecom players, says Sitharaman.
'Special Economic Zones Act to be replaced soon': FM in Budget 2022
Special Economic Zones Act will be replaced with new legislation for the development of enterprise and hubs. It will cover the existing industrial enclaves and enhance the competitiveness of exports: FM Nirmala Sitharaman
68% of the capital procurement budget for Defence to be earmarked for domestic industry
68% of the capital procurement budget for Defence to be earmarked for domestic industry to promote Aatmanirbharta and reduce dependence on imports. This is up from the 58% last fiscal: FM Nirmala Sitharaman
Animation, gaming task force to be set up
Animation, visual effects, gaming and comics sector offers immense potential to employ youth. An AVGC promotion task force with all stakeholders will be set up to recommend ways to realise this and build domestic capacity for serving our markets and the global demand: Nirmala Sitharaman
Drones to be used for crop assessment, digitization of land records, spraying of insecticides: FM
Use of drones to be promoted for crop assessment, digitization of land records, spraying of insecticides and nutrients. Fund to be facilitated through NABARD to finance start-ups for agriculture and rural enterprise which are relevant for the farm produce value chain: FM Nirmala Sitharaman
Will start issuing e-passports soon, says Nirmala Sitharaman
Issuance of e-passports will be rolled out in 2022-23 to make it easier for citizens: Finance Minister Nirmala Sitharaman
400 new Vande Bharat trains to be manufactured in the next 3 years, says FM
Over 2,000 km of rail network to be brought under the indigenous world-class technology KAWACH, for safety and capacity augmentation. 400 new Vande Bharat trains with better energy efficiency and passenger riding experience to be manufactured in the next three years: FM Nirmala Sitharaman
Emergency Credit Line Guarantee Scheme to be extended to March 2023
Emergency Credit Line Guarantee Scheme will be extended up to March 2023 and the guaranteed cover will be expanded by Rs 50,000 crore to cover an amount of Rs 5 lakh crore: FM Nirmala Sitharaman
Open platform for healthcare services to be rolled out soon
An open platform for the National Digital Health Ecosystem will be rolled out. It will consist of digital registries of health providers and health facilities, unique health identity and universal access to health facilities The pandemic has accentuated mental health problems in people of all ages. To better the access to quality mental health counseling and care services, a National Tele Mental Health program will be launched: FM Nirmala Sitharaman
PM Modi's development initiatives for North East to be implemented by NEC: Finance Minister
PM Modi’s development initiatives for the North East will be implemented by the North Eastern Council... This will enable livelihood activities for the youth and women. This scheme is not a substitute for the existing Centre or state schemes: FM Nirmala Sitharaman
Fund to be set up to finance agriculture, rural start-ups
A fund with blended capital raised under co-investment model facilitated through NABARD to finance start-ups in agriculture and rural enterprises for farm produce value chain will be set up. States will be encouraged to revise syllabi of agricultural universities to meet needs of natural, zero-budget and organic farming, modern-day agriculture: Nirmala Sitharaman
Rs 2.37 lakh crores will be the direct payment of MSP to farmers: Sitharaman
Procurement of wheat in Rabi season 2021-22 and the estimated procurement of paddy in Kharif season 2021-22 will cover 1,208 lakh metric tonnes of wheat and paddy from 163 lakh farmers & Rs 2.37 lakh crores will be the direct payment of MSP value to their accounts: FM Sitharaman
Production Linked Incentive Scheme to create 60 lakh new jobs in next 5 years, says FM
Production Linked Incentive Scheme for achieving Aatmanirbhar Bharat has received an excellent response, with potential to create 60 lakh new jobs and additional production of 30 lakh crore during the next five years: FM Nirmala Sitharaman
Gati Shakti masterplan to make world-class infra, says Nirmala Sitharaman
Moving forward on this parallel track, we lay the following four priorities — PM Gati Shakti, inclusive development, productivity enhancement and investment, sunrise opportunities, energy transition and climate action and financing of investments, says FM Nirmala Sitharaman
Budget lays blueprint from India at 75 to India at 100, says Sitharaman
This Union Budget seeks to lay foundation & give blueprint of economy over ‘Amrit Kal’ of next 25 years - from India at 75 to India at 100: FM Nirmala Sitharaman
This Budget focusses on youth, women and farmers, says Finance Minister
There was a sharp increase in public investment and capital expenditure in Budget 2021-22...This Budget (2022-23) will benefit the youth, women, farmers, and the backward classes. The PM Gati Shakti master plan will guide the process, says Finance Minister Nirmala Sitharaman.
Strong vaccination campaign helped us tackle Omicron wave, says Finance Minister
We are in the middle of the Omicron wave, but the speed of our vaccination campaign has helped greatly. I am confident that via ‘Sabka Prayaas’, we'll continue with strong growth, says Nirmala Sitharaman
India's growth is estimated to be at 9.27%: Finance Minister Nirmala Sitharaman in Parliament
Finance Minister Nirmala Sitharaman, while presenting the Budget, said that the country is expected to grow at 9.27 per cent
