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India Budget 2022 Highlights: Digital Currencies To Be Taxed At 30%, Digital Rupee To Be Launched In 2022-23, Says FM

With a focus on job creation, finance minister Nirmala Sitharaman announced a slew of measures to push infrastructure spending. However, the highlight was the lack of big bang tax sops and introduction of taxation on cryptos.

India Budget 2022 Highlights: Digital Currencies To Be Taxed At 30%, Digital Rupee To Be Launched In 2022-23, Says FM
Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday announced Gati Shakti master plan for infrastructure development, hike in capital expenditure, expansion of national highway network by 25,000 kilometers and a master plan for expressways to boost economic growth for next financial year. Sitharaman also announced that the Reserve Bank of India will launch digital currency based on blockchain technology.

Here are the highlights of Union Budget 2022-23:



 

  • 01 Feb 2022 / 5:49 PM

    Will Develop Rail Infra For Small Farmers, Says Nirmala Sitharaman To Doordarshan

    • Will fund five river linking plans
    • Have taken steps to double farmers’ income
    • Budget's complete focus is on agri sector
    • PLI schemes have been successful
    • MSMEs benefited from ECLGS scheme
    • We have made a provision for RBI to issue a currency which will be backed by sovereign
    • We have made provision of sovereign guaranteed loans for hospitality and contact intensive sector
    • We are taxing various sorts of digital assets which are being bought and sold privately
       
  • 01 Feb 2022 / 5:04 PM

    Extension Of Capital Gains Exemption For Investments In Start-Ups By A Year Comes As A Relief, Says  Mohamad Faraz Of Upsparks

    “Extension of capital gains exemption for investments in start-ups by a year comes as a relief and will boost investor sentiment towards start-ups in India. The inclusion of 30 per cent tax would help to regulate the cryptocurrency sector in India however it could also result in a decline in retail investor interest and further clarity on the same could help boost investor confidence. Bringing digital assets into the tax regime is a welcome move from the government and it is important to see how the implementation will be done,” Mohamad Faraz Of Upsparks.
     

  • 01 Feb 2022 / 4:48 PM

    Cut In Customs Duty On Polished Diamond Will Spur Demand For Natural Diamonds, Says Sachin Jain Of  De Beers India

    “We are pleased with the budget announcement for our sector, particularly the reduction of customs duty on cut and polished diamonds from 7.5 per cent to 5 per cent. This will spur greater demand for natural and real diamonds and also give an opportunity to diamond companies to boost operations and, in turn, contribute to greater economic growth for the nation. The proposal to create a simplified regulatory framework to enable the use of e-commerce channels to export jewellery will help us seamlessly take forward our initiative to promote trade through the digital mode. This will bring down transaction costs and save time while enabling us to reach out and expand our customer base globally. Overall, we hope that the gems and jewellery sector continues to plays a pivotal role in the growth of the economy ” said Sachin Jain, Managing Director, De Beers India.

  • 01 Feb 2022 / 4:43 PM

    Congratulate FM Nirmala Sitharaman For Growth Oriented, Forward Looking Budget, Says Anil Agarwal

  • 01 Feb 2022 / 4:04 PM

    Transactions In Crypto World Will Be Taxed, Says Finance Minister

    • We are not taxing currency which will be issued RBI
    • We will be taxing private transactions in crypto world
    • Government does not want to wait on regulations for introducing taxation of cryptos
  • 01 Feb 2022 / 3:59 PM

    LIC IPO In All Probability Will Happen This Year, Says Finance Minister

    • Ongoing divestment transactions will be completed
    • LIC valuation yet to reach final conclusion, says Tuhin Kanta Pandey
       
  • 01 Feb 2022 / 3:54 PM

    Budget 2022 Disappoints The Middle Class With No Tax Sops

    Belying expectations, Finance Minister Nirmala Sitharaman did not tinker with the personal income tax rates in the Budget for 2022-23.

    The minister also did not raise standard deduction, which was widely anticipated in view of elevated inflation levels and impact of the pandemic on the middle class. The standard deduction currently stands at Rs 50,000. There was no change income tax slabs in the personal income tax category in the Budget unveiled on Tuesday. The corporate tax rate too was kept at the same level. However, concessional rate of 15 per cent has been extended by one year for newly incorporated manufacturing units.

    Expectations of tax sops for the middle class was high ahead of Budget 2022, given the need to push consumption in the race to re-capture growth in a pandemic-hit economy.

  • 01 Feb 2022 / 3:47 PM

    Sensex, Nifty Surge On Capital Expenditure Boost In Budget 2022-23

    The Indian equity benchmarks surged on Tuesday as investor sentiment got a boost after the government expanded its capital expenditure plan for next financial year and laid out plan to increase spending on infrastructure to affordable housing to put growth on a firmer footing as the economy recovers from the pandemic. The Sensex rose as much as 1,018 points and Nifty 50 index touched an intraday high of 17,622.

    The Sensex advanced 848 points to close at 58,863 and Nifty 50 index jumped 237 points or 1.4 per cent to settle at 17,577.

  • 01 Feb 2022 / 2:59 PM

    Imported Headphones, Umbrella, Solar Cells To Be Costlier; Cocoa Beans, Frozen Mussels Cheaper

    A large number of commonly used items, including headphones, earphones, loudspeakers, smart meters, imitation jewellery, solar cells and solar modules will become more expensive due to a hike in customs duties on imported parts, as proposed by Finance Minister Nirmala Sitharaman in the Union Budget for 2022-23.

    However, imported cut and polished diamonds, frozen mussels, frozen squids, asafoetida, cocoa beans, methyl alcohol and acetic acid will become cheaper as a result of rationalisation in customs duties.

    Here is a list of imported items that will become costlier:

    • Umbrella
    • Imitation Jewellery
    • Single or multiple loudspeakers
    • Headphones and earphones
    • Smart meters
    • Solar cells
    • Solar modules
    • X-ray machines
    • Parts of electronic toys 

    Here is a list of goods that will become cheaper:

    • Frozen mussels 
    • Frozen squids
    • Asafoetida
    • Cocoa beans
    • Methyl alcohol
    • Acetic acid
    • Cut and polished diamonds 
    • Camera lens for cellular mobile phone. 
       
  • 01 Feb 2022 / 1:19 PM

    Key Budget Numbers At A Glance

    • Allocation for the National Highways Authority of India has been doubled from the FY22 revised estimates of Rs 65,060 crore to Rs 1,34,015 crore in FY23.
    • MNREGA allocation has been reduced from Rs 98,000 crore in FY22 (RE) to Rs 73,000 for FY23
    • GST collection revised estimate for 2021-22 Rs 6.75 lakh crore, up from budget estimate of Rs 6.30 lakh crore. Budget estimate for 2022-23 pegged at Rs 7.80 lakh crore
    • Government pegs total market borrowings in 2022-23 at Rs 11,58,719 crore.
    • Gross tax collection revised estimate for 2021-22 at Rs 25.16 lakh crore, up from budget estimate 2021-22 at Rs 22.17 lakh crore. Budget estimate for 2022-23 pegged at Rs 27.58 lakh crore
    • Corporate tax collection revised estimate for 2021-22 at Rs 6.35 lakh crore, up from budget estimate of Rs 5.47 lakh crore. Budget estimate for 2022-23 pegged at Rs 7.2 lakh crore
    • Income tax collection revised estimate for 2021-22 at Rs 6.15 lakh crore, up from budget estimate Rs 5.61 lakh crore. Budget estimate for 2022-23 pegged at Rs 7 lakh crore
  • 01 Feb 2022 / 1:16 PM

    Sensex, Nifty Erase Gains As Investors Book Profits After Budget Announcement

    The Indian equity benchmarks gave up intraday gains as traders booked profits at higher levels after Budget announcement. The Sensex fell as much as 1,137 points from day's highest level and Nifty touched an intraday low of 17,245 after hgitting high of 17,622.

  • 01 Feb 2022 / 1:13 PM

    Government Sets Disinvestment Target Of Rs 65,000 Crore For FY23

    • The government has set disinvestment target of Rs 65,000 crore for financial year 2022-23, according to Budget documents.
  • 01 Feb 2022 / 12:57 PM

    Share Markets Rejoice Budget Announcements; Sensex Holds Over 800-Point Lead

    The Indian equity benchmarks were trading on a strong note as investors rejoiced Budget announcements by Finance Minister Nirmala Sitharaman. The Sensex was up 887 points at 58,901 and Nifty 50 index rose 221 points to 17,561 by 12:53 pm.

    Capital expenditure expansion and push for infrastructure development through Gati Shakti master plan boosted cement and infra shares, analysts said.

    Buying was visible across sectors twelve of 15 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Metal index's over 2 per cent gain. Pharma, Private Bank, Healthcare, IT, FMCG and Banking shares were also witnessing buying interest.
     

  • 01 Feb 2022 / 12:15 PM

    NPS Deduction For State Government Employees To Increase To 14%

    • Tax deducted at source (TDS) of 30 per cent on digital assets announced
    • National Pension System (NPS) deduction for state government employees to increase from 10 per cent to 14 per cent to bring it at par with Central government employees.
    • Tax incentives for startups extended till March 31, 2023
    • Income from transfer of digital assets to be be taxed at 30 per cent
    • Govenment caps surcharge on long term capital gains tax (LTCG) at 15 per cent for corporates
    • TDS at 1 per cent on transfer of virtual digital assets
  • 01 Feb 2022 / 12:11 PM

    Minimum Alternate Tax Reduced To 15% For Cooperative Societies

    • Cooperative societies are required to pay minimum tax at 18.1 per cent, now it will be reduced to 15 per cent.
    • Reduced minimum alternate tax and surcharge for cooperatives: To provide level playing field to reduce it to 15 per cent
       
  • 01 Feb 2022 / 12:09 PM

    Fiscal Deficit Revised To 6.9% For Current Fiscal

    • Total expenditure expected at Rs 39.45 lakh crore
    • FY23 fiscal deficit pegged at 6.4 per cent of GDP
  • 01 Feb 2022 / 12:05 PM

    Sensex, Nifty Cheer Budget Announcements

    • Nifty above 17,600, rallies over 250 points, Sensex surges nearly 1,000 points after government increases capital expenditure by 35.4 per cent for financial year 2022-23.
  • 01 Feb 2022 / 12:02 PM

    Central Bank Digital Currency (CBDC) To Be Introduced To By RBI In 2022-23

    • Digital rupee to be introduced to be owned by Central bank
    • The technology will be built on blockchain
       
  • 01 Feb 2022 / 11:57 AM

    Capital Expenditure Hiked By 35.4% to 7.5 Lakh Crore For 2022-23

    • Public investment needed to supplement private investment in FY23. Outlay for capex to increase 35.4 per cent
    • Rs 10.68 lakh crore will be effective government expenditure in FY23
    • Government to introduce sovereign green bonds in FY23
    • An international arbitration centre to be set up in GIFT City
  • 01 Feb 2022 / 11:47 AM

    SEZ Act To Be Replaced With New Law, Defence R&D To Be Opened For Private Sector, Says Sitharaman

    • Special economic zones to be replaced with new legislations for states to become partners in creating biz hubs
    • Defence R&D to be opened up for private sector, startups
    • Private industry to be encouraged to take up innovation in production of military equipment
    • Mobility parks to be developed for EV manufacturing. Battery swapping policy soon
    • 68 per cent of defence capex to be earmarked for domestic companies
    • For achieving 280 GW solar capacity by 2030, Rs 19,500 crore allocated for PLI for manufacturing units for solar modules
  • 01 Feb 2022 / 11:46 AM

    Spectrum Auction For 5G Services Within 2022-23. 5G Infra To Be Created Through PLI

    • 5 per cent of annual service obligation of funds in telecom sector to be invested in broadband services in rural areas
  • 01 Feb 2022 / 11:45 AM

    Necessary Amendments In IBC To Be Facilitated To Smoothen Bankruptcy Resolution, Says FM

    To enhance transparency and reduce delay in payment, e-billing system to be launched for ease of business in procurement for government departments. Completely paperless e-bill system for all central ministries to be launched.

  • 01 Feb 2022 / 11:40 AM

    High Level Committee Of Urban Planners To Be Formed For Next Level Urbanization, Says FM

    • Cities to be re-imagined as centres of sustainable living
    • A high level committee will be formed for urban development for reforms in city planning and implementation. 
    • This is in keeping with the need of urban centres in the next 25 years
       
  • 01 Feb 2022 / 11:37 AM

    Rs 1,500 Crore Allotted For Development Initiative For North East In FY23

    • Border villages with sparse population and connectivity on northern borders will be covered under Vibrant Village Programme
    • Vibrant villages programme to cover villages on the North East borders
       
  • 01 Feb 2022 / 11:34 AM

    To Aid Financial Inclusion, 1.4 Lakh Post Offices Will Be Linked To Core Banking, Says Finance Minister

    • 75 digital banking units in 75 districts to be set up by scheduled commercial banks
  • 01 Feb 2022 / 11:30 AM

    Finance Minister Allocates Rs 60,000 Crore Har Ghar Nal Se Jal Scheme

    • Rs 60,000 crore allocated for covering 3.8 crore households for Har Ghar Nal Se Jal scheme
    • Rs 48,000 crore allotted for PM Awas Yojna
    • 18 lakh affordable houses by 2023
    • 80 lakh household to be covered under this scheme
       
  • 01 Feb 2022 / 11:27 AM

    Open Platform For National Digital Health Ecosystem To Be Launched, Says Sitharaman

    • For better access to quality mental health care, national tele mental health care to be launched
    • Saksham Anganwadis to have better infra, audio-visual facility
    • 2 Lakh anganwadis to be upgraded under this scheme
  • 01 Feb 2022 / 11:22 AM

    ECLGS Scheme Extended For MSMEs

    Emergency credit line guarantee schemes extended by Rs 50,000 crore till March 2023 to a total Rs 5 lakh crore for MSMEs
     

  • 01 Feb 2022 / 11:20 AM

    Government Allocates Rs 7 Lakh Crore For Direct Transfer For MSP Support

    • Allocates Rs 7 lakh crore for direct transfer for MSP support
    • In the five kilometer wide corridor along the Ganga, chemical free farming will be promoted
    • To reduce dependence on oil seeds, domestic production enhancement to be implemented
    • Kisan drones to be promoted for crop assessment
  • 01 Feb 2022 / 11:12 AM

    FM Announces PM Gati Shakti Master Plan For Infra Development

    • National Highway Network to be expanded by 25,000 kilometers
    • Gati Shakti masterplan for expressways to be be formulated this year
    • Projects announced in National Infra Pipeline will be aligned with PM Gati Shakti
    • Multi-Modal Logistics Parks to be created in 2022-23
    • Multimodal logistics park at 4 locations through PPP model in FY23
  • 01 Feb 2022 / 11:08 AM

    LIC IPO Expected Shortly

    Finance Minister Nirmala Sitharaman told parliament that the LIC share sale via initial public offering will be introduced in current financial year.

  • 01 Feb 2022 / 10:48 AM

    Banking Shares Surge Ahead Of Budget 2022-23

    Buying was visible across sectors ahead of Budget presentation. All the 19 sector gauges compiled by the National Stock Exchange were trading higher led by S&P BSE Bankex index's nearly 2 per cent gain. Finance, Healthcare, Basic Materials, Utilities, Capital Goods and Metal indices also rose between 1-1.7 per cent.

    Mid- and small-cap shares were also witnessing buying interest as S&P BSE MidCap and S&P BSE SmallCap indices rose nearly 1 per cent each.

    Top Nifty gainers:

    • Sun Pharma up 5.33 per cent
    • Britannia Industries up 4.35 per cent
    • IndusInd Bank up 3.3 per cent
    • ICICI Bank up 2.55 per cent
    • Tata Steel up 2.5 per cent

    Top Nifty losers

    • Indian Oil down 2.6 per cent
    • Bharat Petroleum down 1.9 per cent
    • Tata Motors down 1.21 per cent
    • ONGC down 0.31 per cent
    • Bajaj Auto down 0.2 per cent
       
  • 01 Feb 2022 / 10:38 AM

    PM Narendra Modi Arrives At Parliament for Union Budget 2022

  • 01 Feb 2022 / 10:30 AM

    Sensex, Nifty Extend Gains Ahead Of Budget 2022-23

    The Indian equity benchmarks extended gains ahead of Budget presentation. Sensex rose as much as 915 points and Nifty touched an intraday high of 17,596 led by gains in ICICI Bank, HDFC Bank, Infosys, HDFC, Reliance Industries, Kotak Mahindra Bank and Larsen & Toubro.
     

  • 01 Feb 2022 / 10:26 AM

    The Stock Market Was Up Only 4 Times On Budget Day In Last 10 Years

    While some Budgets in the past sent the stock markets soaring, others led to a crash. However, most of the times, Budget day saw the stock market losing value. In the last 10 years, the market fell 9 out of 13 times on budget days, including  interim budget days. Read here

  • 01 Feb 2022 / 10:23 AM

    GST Collection Crosses Rs 1.30 Lakh Crore Mark In January

    The government has collected Rs 1,38,394 crore in the month of January, the Ministry of Finance notified in a press release on Monday. 

    The development comes a day ahead of the Union Budget, which is to be tabled in the parliament on February 1. According to the release, the amount of GST collection includes Rs 24,674 crore as CGST, Rs 32,016 crore as SGST, Rs 72,030 crore as IGST and a cess of Rs 9,674 crore. The GST collection was up 15 per cent for the month of January 2022, compared to the same period last year, and was 25 per cent higher than the GST revenues in 2020.
     

  • 01 Feb 2022 / 10:16 AM

    Infrastructure Shares Gain Ahead Of Budget Presentation

    Shares of infrastructure and cement companies were trading higher ahead of Budget presentation on hopes of big spending announcements on infra projects.

    • UltraTech Cement up 2 per cent
    • Ambuja Cement up 2 per cent
    • Larsen & Toubro up 2.1 per cent
    • IRB Infra up 2.6 per cent
    • ACC up 1.5 per cent
       
  • 01 Feb 2022 / 10:10 AM

    Foreign Institutional Investors Sold Shares Worth Rs 33,303 Crore In January Ahead Of Budget

    Foreign institutional investors sold shares worth Rs 33,303 crore in January, data from National Securities Depository Limited showed. Analysts say policies which will be announced in Budget will be key for foreign institutional investment in the country.
     

  • 01 Feb 2022 / 10:04 AM

    Can Nirmala Sitharaman’s Union Budget Keep The Promise Of High Growth Projected In Economic Survey 2022?

    A day before finance minister Nirmala Sitharaman presents the annual budget for 2022-23, the Economic Survey 2022 has projected an ambitious GDP growth rate of 8 to 8.5 per cent for the financial year 2022-23 against the current fiscal’s advance estimates of 9.2 per cent. The projected growth, if achieved, will establish India as a stable economy once again. Read more

  • 01 Feb 2022 / 10:01 AM

    Finance Minister Nirmala Sitharaman Shows Annual Budget For Financial Year 2022-23

    Finance Minister Nirmala SitharamanFinance Minister Nirmala Sitharaman, center, shows annual federal budget for the year 2022-23, with her team before leaving finance ministry for the parliament house to present it, in New Delhi.
  • 01 Feb 2022 / 9:52 AM

    Tata Motors Shares Fall On Reporting Loss In December Quarter

    Shares of Tata Motors fell as much as 4 per cent in an otherwise strong market after it reported loss in December quarter. The Mumbai-based car maker reported net loss of Rs 1,451.05 crore for the third quarter ended December 31, 2021, dragged down by the impact of semiconductor shortage on its British arm Jaguar Land Rover (JLR).

    The company had posted a consolidated net profit of Rs 2,941.48 crore in the same period last fiscal.

    Its consolidated revenue from operations stood at Rs 72,229.29 crore in the third quarter as against Rs 75,653.79 crore in the year-ago quarter, it added.

  • 01 Feb 2022 / 9:40 AM

    Banking Shares Surge Ahead Of Budget Announcement; Bank Nifty Up Over 750 Points

    Banking shares were witnessing strong buying interest ahead of Union Budget 2022-23 as the sub-index of banking shares on the NSE - Nifty Bank index jumped 786 points or 2 per cent to 38,760. All the 12 shares in the banking index were trading higher.

    Top gainers in banking space:

    • IndusInd Bank up 3.7 per cent
    • ICICI Bank up 2.94 per cent
    • AU Small Finance Bank up 2.9 per cent
    • RBL Bank up 2.36 per cent
    • Axis Bank up 2.3 per cent
       
  • 01 Feb 2022 / 9:26 AM

    Sensex Surges Over 500 Points, Nifty Reclaims 17,500 Ahead Of Budget Presentation

    The Indian equity benchmarks staged a gap up opening on Tuesday ahead of presentation of Union Budget 2022-23 by Finance Minister Nirmala Sitharaman. The Sensex rose as much as 713 points and Nifty 50 index reclaimed its important psychological level of 17,500. Analysts expect the finance minister to announce big bang economic reforms to boost the economic growth. ICICI Bank, Infosys, HDFC Bank, HDFC, Reliance Industries, Kotak Mahindra Bank and TCS were among the top movers in the Sensex.

    Buying was visible across the board as all the 15 sector gauges compiled by the National Stock Exchange were trading higher led by Nifty Bank index's 1.6 per cent gain.
     

  • 01 Feb 2022 / 9:10 AM

    Funnel Household Savings Into The Right Areas

    Recent years have seen a major shift in household savings and investments in India — from predominantly physical assets to financial avenues. According to data disclosed in the Reserve Bank of India’s annual reports, the share of net financial savings of households rose to 40 per cent in fiscal 2020 from 33 per cent in fiscal 2013. 

  • 01 Feb 2022 / 9:10 AM

    Government Needs To Focus on Accessibility And Affordability Of Insurance Plans

    The year 2021 has been a year of trials and tribulations, of growth and learning, of despair and hope, and of stagnation and innovation. To borrow from Dickens’ A Tale of Two Cities, “It was the best of times, it was the worst of times.” 

    The lessons learnt cannot and will not be relegated just to the year being left behind. The ongoing Covid pandemic has emphasized the importance of institutionalising health care services. Stable, equitable, thriving, and peaceful societies and economies can only be catalysed by the assurance that every single individual will be taken care of. In a country plagued by divides, the digital divide got accentuated during the pandemic.   

  • 01 Feb 2022 / 9:10 AM

    Good Morning! And welcome to Outlook's live Budget blog

    Stock markets are indicating a gap up opening ahead of presentation of Union Budget 2022-23 by Finance Minister Nirmala Sitharaman on hopes of big bang economic reforms. The Nifty Futures on Singapore Exchange also known as SGX Nifty futures rose over 1 per cent indicating a start above 17,500.

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