Budget 2022 Live Updates: Modi hails Nirmala Sitharaman for a people-friendly and progressive Budget

Party seems to be over for crypto assets and exchanges: Subhash Chandra Garg

Brevity has always been a virtue: Anand Mahindra

FM & PM have again deeply disappointed India’s salaried & middle Class in direct tax measures: Randeep Surjewala

The FM just unveiled a budget aimed at spurring spending to support growth. Here are the main talking points

DEFICIT/EXPENDITURE

♦ Proposes fiscal deficit of 4.5% of GDP by 2025/26

♦ Projects fiscal deficit of 6.4% of GDP in 2022/23

♦ Revised fiscal deficit for 2021/22 at 6.9% of GDP

♦ Total expenditure in 2022/23 seen at 39.45 trillion rupees

♦ States will be allowed 4% fiscal deficit to GDP in FY23

♦ 50 year interest free loans over and above normal borrowing allocated to states

♦ Scheme for financial assistance to states for capital investment outlay to be 1 trillion rupees in 2022/23

TAXATION

♦ Import duty on certain chemicals are being reduced

♦ Customs duty exemption on steel scrap to be extended for another year for small- and medium-sized businesses

♦ Customs duty on stainless steel, flat products, high steel bars to be revoked

♦ Unblended fuel to get additional duty of 2 rupees per litre from October 2022

FINANCE

♦ Emergency credit line guarantee scheme for small and medium sized businesses to be extended to March 2023

♦ Energy transition and climate action will be a major government priority

♦ Public issue of Life Insurance Corporation expected shortly

♦ Initiatives from last year's budget have been provided adequate allocations in this budget

♦ Special Economic Zones Act to be replaced with new legislation

♦ To amend bankruptcy code to speed up resolution process

♦ Aims to lower winding up of companies to 6 months from 2 years currently

♦ Long term capital gain surcharge to be capped at 15%

DIGITAL CURRENCY

♦ To launch digital rupee using blockchain technology starting 2022/23

♦ To launch scheme for taxation of virtual digital assets

♦ Losses from sale of virtual digital assets cannot be offset against other income

♦ Income from virtual digital assets to be taxed at 30%

DEFENCE

♦ Govt committed to reducing defence imports

INFRASTRUCTURE

♦ 5G spectrum auctions to be conducted in 2022

♦ Scheme for design-led manufacturing for 5G will be part of production-linked scheme

♦ To award contracts to lay optical fibre in rural areas, completion in 2025

♦ 480 billion rupees set aside for affordable housing in 2022/23

♦ To allocate additional 195 billion rupees for production-linked incentives towards solar equipment manufacturing

AGRICULTURE

♦ Domestic scheme introduced to reduce dependence on oilseed imports

♦ Fund with blended capital raised under co-investment model to finance agriculture startups

♦ Railways to develop infrastructure for small farmers in 2022/23

TRANSPORT

♦ 400 energy efficient trains to be manufactured over next three years

♦ National highways network to be expanded by 25,000km in 2022/23

♦ Highways expansion to cost 200 billion rupees in 2022/23

♦ India to bring out battery swapping policy

Sensex surges 879.62 points, currently at 58,893.79. Nifty rises 234.70 points, currently at 17,574.55

In view of the pandemic, I propose to extend the period of incorporation of eligible start-ups by one more year up to 31-3-2023 for providing tax incentives: Finance Minister Nirmala Sitharaman

Key highlights of Budget speech

* In 2022-23, states will be allowed fiscal deficit of up to 4 pc of GSDP

* Rs 1 trillion financial assistance to states to be provided in 2022-23 to catalyse investments

* Proposed to introduce Digital Rupee by RBI using blockchain technology, starting 2022-23

* Measures will be taken to step up private capital in infra sector

* PE/VC invested Rs 5.5 trillion in start-up, expert committee will be set up to suggest measures to help attract investment

* Data centre and energy storage system to be given infrastructure status; move to provide easy financing

* International arbitration centre will be set up in GIFT city to provide faster dispute resolution

* World-class university to be allowed in GIFT IFSC free from domestic regulation

* Sovereign green bonds to be issued to mobilise resources as part of govt's borrowing programme

* Public investment must take lead to pump prime private investment and support demand

* Financial support will be provided to farmers to take up agro-forestry

Here are the biggest announcements for taxpayers

-Govt to provide one-time window to correct omissions in ITRs filed, updated returns to be filed within 2 years

-Govt to extend period of incorporation by 1 year up to March 31, 2023 for startups to avail tax incentives

-Govt proposes to increase tax deduction from 10% to 14% on contribution in NPS by state govts to employees

-305 tax on income from transfer of virtual digital assets; no deduction on expenses except cost of acquisition, loss cannot be set off

Union Finance Minister Nirmala Sitharaman introduces Finance Bill 2022.

Customs duty on cut & polished diamonds, gems to be reduced to 5%: Finance Minister Nirmala Sitharaman