Highlights of Budget FY 2022

Finance Minister of India had presented Financial Year 2022 budget on 1st Feb 2021. Post budget we had seen good rally in equity market. Nifty was up by almost 5% and NiftyBank was up by 8% at closing.

So some key highlights about the budget related to equity market are:

1. Scrapping policy for 15yrs CV & 20 yrs personal

2. 7 mega TEXTILE parks within 3 yrs time

3. Development financial Institute will start with Rs 20k crores

4. Capital expenditure for FY22- Rs 5.5Lk crores

5. GAIL IOC HPCL will sell pipeline assets

6. Health will get Rs 2.2 lakh crores in FY 22

7. By next year, 8500km of ROAD project will be completed

8. Rs 25k crores will be spent on WEST BENGAL highways

9. City gas distribution- new 100 districts will be included

10. Security market code will be launched

11. FDI in insurance- increase to 74% from 49%

12. FY-22 PSUs will get 20k cr

13. Main PSUs divestment will take in FY 21-22 including 2 public banks & 1 General insurance companies

14. LIC IPO will be launched in FY-22

15. Rs 1.75 lakhs crores is the target of strategic

16. Rural infra fund will get Rs 40k crores

17. MSME will get Rs 15,700 crores

18. Exemption for those above 75 yrs not to pay TAX having income from pension

19. TAX AUDIT Limit increased from Rs 5 crores to 10 crores for those making 95% transactions digitally

20. REIT, INVIT dividends are now out from TDS regime

21. Tax holiday period for start-ups by 1 more year

22. Increased Start up investment capital gain exemption by 1 more year

23. Reduced custom duty to alloy(steel/iron) to 7.5%

Sectors which can get benefits from the budget are:

1. Auto

2. Infra- Construction

3. Public Sector Banks

4. Insurance

5. MSME

6. Gas Distribution companies

7. Textile

8. Healthcare