hello friends today we are going to talk
about the important parts and plans of
union budget 2022 we will cover six key
developments from today's budget which
are most relevant to individual
investors but before moving ahead hit
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[Music]
let us start with the first big
development hinted at by the finance
minister in her budget speech today that
was the plan involving the pm gatti
shakti program this program is expected
to help develop the national
infrastructure for the next 25 years and
pave the way for a multi-modal transport
network across india the kathi shakti
plan will be driven by seven engines
which are roads railways airports ports
mass transport waterways and logistics
infrastructure the plan will be aiming
at bringing on economic transformation
through seamless multimodal connectivity
and logistics efficiency under this plan
a master plan for expressways will be
made in 2022-23
and the national highways network will
be expanded by 25 000 kilometers with
funds of 20 000 crore rupees being set
aside for these plans contracts will
also be awarded for implementation of
multi-modal logistics parks at four
locations through ppp mode in the year
400 vande bharara trains will be
developed and built in the next three
years 100 pm gatishati cargo terminals
for multimodal logistics facilities will
be developed during the next three years
financing and faster implementation of
metro systems will also be implemented
according to the plan these initiatives
have added to the other capex
announcements which have resulted in a
sharp rise of over 35
in the capex outlay for financial year
23 which has risen to 7.5 lakh crore
rupees versus 5.54 lakh crore rupees
last year the continued announcement of
these massive infrastructure plans has
seen infrastructure stocks like lnt and
irb infra ending the day at above three
percent gain while cement makers like
shri cement and dalmia bharat have seen
more than five percent gain today and
ultra tech india cements ramco and jk
lakshmi have all seen gains of about
three percent even metal stocks like
tata steel jindal steel and vedanta have
rallied five to seven point five percent
today highlighting the positive impact
of these announcements on the sector the
second big development was the
announcement of the central bank digital
currency of digital rupee this is
expected to provide a big boost to the
digital economy and highlight the stance
of the authorities in exploring
blockchain technologies and practically
implementing them in the country the
digital rupee is expected to be released
in the year ahead by the rbi regarding
digital assets the finance minister has
also announced a brand new taxation
scheme for virtual digital assets it is
proposed that any income from the
transfer of any virtual digital asset
shall be taxed at a flat rate of 30
percent further details regarding this
new tax regime are losses from this
asset class will not be used to offset
profits from other asset classes tds of
one percent will be deducted at the time
of transaction gifting of these assets
will also be taxed at the same 30
percent this development may be a downer
for virtual digital investors in the
short term but it highlights towards
increasing acceptance of virtual assets
like cryptocurrencies and nfts in india
the third big development was regarding
clean energy and electric vehicle space
the finance minister has proposed the
creation of special mobility zones in
urban areas under development and these
zones shall be used exclusively for
public transport using clean energy and
electric vehicles furthermore the
finance minister stated that given the
constraint of space in urban areas for
setting up charging stations at scale
the government will be bringing in a
battery swapping policy officially and
will formulate interoperability
standards to support this movement it is
also expected to encourage the
development of battery or energy as a
service model for the private sector
battery swapping is a mechanism in which
instead of using a fixed air movable
battery structure that can only be
charged at a charging point consumers
can use portable batteries where low
charge batteries can be exchanged with
fully charged batteries for a fee in the
clean energy space the finance minister
has proposed the target of making 280
gigawatt of installed solar capacity by
2030 aided by an additional allocation
of 19 500 crore b's for the solar cell
pli scheme these announcements resulted
in minor rises in the prices of battery
makers like excite amara raja and stocks
associated with solar energy like adani
green energy and borosil renewables the
fourth big announcement was regarding
the housing sector in india the finance
minister announced that over 80 lakh
houses will be completed for the
identified eligible beneficiaries of pm
awards yojana in both rural and urban
regions around 48 000 crore rupees will
be allocated for this program this year
furthermore an allocation of 60 000
crore rupees has also been made to
provide access to tap water to 3.8 crore
households under the harghar nulsi gel
program which is also expected to
benefit the affordable housing sector
immensely this announcement saw
affordable housing players rise with
ava's finances shooting up almost 10
today while hdfc limited and canfin
homes have both seen gains of over 1.9
today these announcements were also
partly responsible for the gains seen in
the cement and steel sectors which were
the biggest gainers in the market today
the fifth big announcement was the
extension of additional credit to ms me
sector under the emergency credit line
guarantee scheme the government has
extended eclgs
to march 2023 while the guaranteed cover
has expanded by 50 000 crore rupees to a
total of 5 lakh crore rupees although
this is a big relief for the msme sector
it is expected to lead to higher npas in
public sector banks in the future when
the program winds up this expectation
has seen a big divergence emerge in the
banking sector stocks today with private
banks rising while public sector banks
have fallen it resulted in the nifty
private bank index rising 1.93
while the nifty psu bank index had
fallen 0.58 by the end of the day the
sixth and last big development of the
day was the absence of any changes to
the income tax regime the only major
development regarding income tax was
that taxpayers can now file an updated
return on payment of additional tax this
updated return can be filed within two
years from the end of the relevant
assessment here another development of
note here was that the surcharge on
long-term capital gains on sale of
unlisted assets was capped at 15 from
the previous 37 at its peak this
surcharge is an additional charge levied
above the ltcg on the sale of any
long-term asset of big transaction size
the surcharge followed a slab structure
where the percentage charge increase
with the transaction size the highest
lab for listed assets like equity and
fixed income is already fixed at 15
while for unlisted assets like property
it was as high as 37 percent for gains
above five crore rupees this is the
figure which has been reduced by the
government to only 15 percent bringing
the ltcg treatment for both listed and
unlisted assets at par and incentivizing
the long-term holding of assets although
this is of little consequence for
everyday investors we thought to clarify
this point completely so that there
isn't any misconception that the actual
ltcg has increased to 15 from the actual
10 percent although budget 2022 has not
delivered on the expectation of income
tax relief there have also been no
negative developments regarding taxation
and in most of the important points the
status quo has been maintained thus we
come to the end of this video we hope we
have covered all of the major
developments in budget 2022 which are
relevant to individual investors let us
know in the comments below which
development do you think was the most
important for retail investors please
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