KEY BUDGET HIGHLIGHTS
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
ANNOUNCEMENTS FOR TAXPAYERS
Taxpayers can file an updated return on payment of taxes within two years from the end of relevant assessment year.
The new provision will ensure voluntary tax filing and reduce litigation, says FM
30% tax on proceeds of virtual/digital assets with no deductions other than cost of acquisition
No set off permitted against other income
1% TDS to be levied on payments made on transfer of digital assets
Deduction for employer contribution to NPS increased to 14% from 10% earlier for State govt employees on par with central govt employees
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
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
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%
FISCAL 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
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%