Budget 2022 Highlights: Key Takeaways for Investors
On Tuesday, Union Finance Minister Nirmala
Sitharaman presented the Union Budget for the financial year 2022-23.
Let us look at some of the important announcements
made by the finance minister in the budget with special emphasis on updates for
investors.
Cryptocurrency and Digital Rupee
- The government intends to develop a digital
rupee based on blockchain and other technologies in the fiscal year
2022-23. It will be issued by the Reserve Bank of India.
- Profits from digital assets will be taxed at
the highest rate of 30%.
- Only the acquisition cost would be considered
while computing the income from digital assets.
- The losses from digital assets can’t be set
off.
- TDS of 1% will be deducted on transferring
digital assets.
- The individual who receives the digital assets
as a gift will also have to pay taxes.
Increase in the tax benefit for state government
contribution in the NPS
- For state government employees, the tax deduction
against employer contributions in NPS will be increased to 14% from the
current 10%.
Possibility of correcting a tax mistake
- Taxpayers have two years to file an updated
return within two years of the relevant assessment year if they fail to disclose
income when completing their first forms.
Other important updates:
Here are some of the other essential announcements
mentioned in the budget that may boost the companies associated with these
sectors.
Infrastructure sector
The government wants to expand highways across the
country by 25,000 kilometres and spend more money on the Nal se Jal scheme,
five river link projects in different states, and more money for the PM housing
scheme.
The government would develop the PM Gati
Shakti master plan for expressways in 2022-23 to promote the speedier movement
of people and products. In 2022-23, the national highway network will be
increased by 25,000 kilometres. Besides public investment, Rs 20,000 crore will
be allocated through other sources.
Drone industry
The announcement of Drone Shakti by the Union
government is a major boost to the drone sector. Drone Shakti and the Rs. 120
crore PLI scheme for drones and drone components will assist boost domestic
manufacturing and job creation. According to the government, start-ups would be
encouraged to help with `Drone Shakti` through various use cases and
applications.
Blended petrol
According to the budget, unblended petrol will be
subject to an additional differential excise fee of Rs.2/ litre from October 1,
2022. The finance minister has announced this move to lower the percentage of
unblended petrol in the country and reduce dangerous particle emissions.
MSME & Travel Industry
In her Budget 2022 speech, Union Finance Minister
Nirmala Sitharaman announced the continuation of the Emergency Credit Line
Guarantee Scheme (ECLGS) until March 2023.
The government will set aside a separate corpus for
hospitality and allied industries, and the government will take initiatives to
strengthen the MSME (Micro, Small and Medium Enterprises) sector.
The finance minister stated that the scheme`s
coverage would increase from Rs.50,000 crores to Rs.5 lakh crores.
5G
The Indian government plans to hold a spectrum
auction by the end of the year to help private telecom companies put out 5G
services.
As part of the production-linked incentive plan, a
design-led manufacturing scheme will be developed to help build a robust
ecosystem for 5G.
Form expert panel for PE/VC investments
The government is going to set up an expert panel
to help people invest in venture capital and private equity. The government,
through this panel, will look at more policies that could help investors who
put money into Indian businesses from outside the country.
Conclusion
While the budget didn’t have any significant
updates for mutual fund investors, it made major announcements for the crypto
industry. This article has summarised some of the major pointers announced in
the budget.
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