Budget 2022 expectations LIVE: Jobs, tax reduction amid pandemic, and more

Budget 2022 LIVE: With Assembly elections in four states and one Union Territory getting closer, the Centre could go for some populist measures

8:46 PM

ICAI seeks tax, accounting reforms

The Institute of Chartered Accountants of India (ICAI) has sought about 14 tax and accounting reforms in the upcoming Union budget.

 

The suggestions essentially aim at making laws simple, fair, transparent. less litigative and user friendly, ICAI president Nihar N Jambusaria said.

 

“There are about 14 suggestions from our end submitted to the Central Board of Indirect Taxes & Customs (CBIC) for consideration,” he said. The suggestions include permitting carry back of losses and introducing suitable legislative amendments for its application. It is relevant for hospitality, passenger transport and some other sectors. Read more.

7:34 PM

Focus likely on raising limits for basic tax exemption, standard deduction

The Union Budget is expected to focus on employment generation, increase in limits for basic tax exemption, standard deduction, medical expenses, rationalisation of tax rates and certain social security investments.

 

Currently, Section 16(1A) of the IT Act provides for a standard deduction of Rs 50,000 from the salary income of a taxpayer. This deduction was enhanced from Rs 40,000 to 50,000 by the Finance Act 2019 and has not been increased since then. Read More.

4:55 PM

'There needs to be more clarity on crypto regulations'

"To ease the burden on start-ups and promote this sector further, we expect the government to look into some of the pressing concerns. The most important area would be the overall ease of doing business, which includes setup and commencement of business and most importantly the entire tax structure and rules related to GST, income tax, etc. Startup-friendly policies should be made to easily register a business and provide relaxation in taxes till it reaches a minimum revenue and allow easy access to working capital. Given that more and more start-ups are growing in the country, and ESOPs being one of the most important tools to hire and retain skilled workers, we believe that ESOPs taxation should be eased or relaxed. Advance taxation should not be taken. 

 

"There needs to be more clarity on crypto regulations as it is still a gray area in India and it is in a nascent stage. Most Indian blockchain/crypto start-ups are setting base in UAE, Singapore and other countries because of the lack of clarity with the regulations around it. Hence clearing the air on policies pertaining to new digital asset classes such as Crypto & NFT's will go a long way in helping Indian investors invest stress-free," says Mohamad Faraz, Founding Partner, Upsparks, an early-stage venture capital firm.

4:41 PM

Fintech industry hopes for incentives in Budget to push financial inclusion

Stepping up demand for tax concessions in the forthcoming Budget, the fintech industry is stressing that the fiscal and non-fiscal incentives are needed to promote financial inclusion and move towards a less-cash economy.

 

The fintech industry and experts have urged Finance Minister Nirmala Sitharaman to lower the TDS rates, saying such a move would free the capital for the sector without any impact on the government's revenue.

3:34 PM

Make investments more attractive in pharma sector: Pre-Budget survey

A pre-budget expectations survey showed increasing demand for making investments more attractive in the pharmaceutical industry.

 

As per the Grant Thornton Bharat survey, a majority of those surveyed opined that the government should enhance outlay in the PLI scheme, with a focus on bio-pharmaceuticals and medical devices.

 

"The industry expects that innovation and research & development (R&D) will be the key investment drivers," the survey report said. Read More.

3:06 PM

'Government will facilitate steps for inclusion of Indian bonds in the global bond fund index'

"Government debt to GDP ratio is around 90 %. Total interest payment has reached 45% of the net revenue realizable by government in the coming years. The economy is in a recovering rapidly. Liquidity and monetary conditions are supportive for economic recovery. Globally, central banks are hiking interest rates to control inflation pressure in the economy. Given this background and lower impact of third wave of covid, we expect the government to focus on fiscal consolidation. We expect the next year fiscal deficit to be around 6% of GDP and total borrowing programme to be in the range of Rs 12.5-13 trillion.

"The government will also give a road map to reduce the fiscal deficit in coming years. The government will target aggressive divestment and facilitate steps for inclusion of Indian bonds in the global bond fund index," says Murthy Nagarajan, Head-Fixed Income, Tata Mutual Fund.

2:55 PM

A tax policy roadmap for Net Zero

The heady transition to Net Zero by 2070 will call for greater investments in India. It is imperative for the Ministry of Finance to prepare a strategic roadmap in sync with the ‘Panchamrit’ goals with very clear and stable tax policies to win the hearts and wallets of potential investors in the renewable energy space. What better time than Union Budget 2022–23 to set this in motion? Read more

12:19 PM

Budget 2022 LIVE updates: Budget session of Parliament is set to kick off on Monday

The Budget session of Parliament is set to kick off on Monday, January 31, 2022, with President Ram Nath Kovind addressing both the houses.

11:43 AM

Budget 2022 expectation: Rural stimulus need of the hour amid Covid-19 pandemic

Consumption, which was impacted during the pandemic, is expected to improve as the rate of vaccinations rises to cover the entirety of the country’s eligible population. Corporate taxation, which was reduced in 2019, is also expected to remain untouched in FY23.

11:20 AM

Budget 2022 expectations: Sops to boost investment in real estate sector, say brokerages

There are multiple expectations from firms in the real estate sector, the second largest employer after agriculture. Key among them are raising the exemption limit under Section 24 (b) of the Income Tax Act for interest on housing loans taken for self-occupied property from the current Rs 2 lakh to Rs 5 lakh to improve liquidity.

 

Brokerages also expect an increase in the safe harbour limit under section 50C of the I-T Act for home buyers purchasing a property below the circle rate by up to 20 per cent beyond June 30 for primary sale of residential units of value up to Rs 2 crore. This will help builders reduce their unsold ready-to-move inventory, especially Lodha (Macrotech Developers) and Oberoi Realty, as they are sitting on the most such units, they add.

11:13 AM

Budget 2022 expectation LIVE: Capex push likely in Union Budget to support growth

The Budget is expected to push public capital expenditure (capex) and simultaneously create a conducive environment for private capex. This would mean raising allocations towards sectors such as defence, railways and renewable energy transmission projects, perking up the domestic capital goods industry, brokerages said.

11:03 AM

Budget 2022 expectations: Job creation

When the government announces the Union Budget on Tuesday, brokerages and rating agencies expect measures to make automobiles, particularly two-wheelers, more affordable. Any employment generation initiative, if announced, will spur consumption, they say. A focus on infrastructure development and rural economy will also bode well for the revival of a sector that is set to end fiscal 2021-22 (FY22) with a year-on-year volume decline for the third straight year.

 

After two consecutive years of fall, volumes were supposed to rise in FY22. But a sharp and sudden surge in the second wave derailed the recovery that was seen in the second half of FY21. Other factors like high ownership costs coupled with a global shortage of semicondu-ctors had an adverse impact on demand.

10:55 AM

Budget 2022-23: Job creation to drive auto sales, say brokerages

When the government announces the Union Budget on Tuesday, brokerages and rating agencies expect measures to make automobiles, particularly two-wheelers, more affordable. Any employment generation initiative, if announced, will spur consumption, they say.

 

A focus on infrastructure development and rural economy will also bode well for the revival of a sector that is set to end fiscal 2021-22 (FY22) with a year-on-year volume decline for the third straight year. Read more

10:27 AM

Budget 2022-23: Higher allocation in infra sector to fuel economic recovery

Brokerages expect government spending on infrastructure to continue in financial year 2022-23 (FY23) with sizeable growth in capital expenditure in roads, highways, railways, defence, and housing sectors.

 

The recently launched National Infrastructure Pipeline, Gati Shakti, and National Bank for Infrastructure Financing & Development (NaBFID) will boost investment-led growth and provide a public sector-led capex push, while private capex will be driven by the production-linked incentive (PLI) schemes, brokerages said. Read more

9:59 AM

Real estate sector should be accorded top priority status in budget, say developers

The real estate sector should be accorded top priority status in the upcoming budget to boost employment and growth of the economy, developers said here on Friday.

The construction industry has proven itself a "resilient sector against the pandemic", and is now riding on a positive growth trajectory, they claimed.

The sector is expected to reach a market size of USD 1 trillion by 2030, and will contribute around 13 per cent to the GDP by 2025, a builder said.

9:44 AM

India reports over 235,532 Covid cases, 871 fatalities

With 235,532 people testing positive for the coronavirus infection in a day, India's total tally of cases increased to over 40.8 million, according to the Union Health Ministry data updated on Saturday.

The death toll has climbed to 493,198 with 871 fatalities reported during the 24-hour period, the data updated at 8 am showed.

The active cases decreased by 101,278 to reach 2,004,333 -- 4.91 per cent of the total infections -- while the country's recovery rate stands at 93.89 per cent, the ministry said.

The daily positivity rate was recorded at 13.39 per cent, while the weekly positivity rate was 16.89 per cent, according to the health ministry.

9:34 AM

Budget 2022: Cement sector may shine with infra announcements, say analysts

Schemes to develop rural infrastructure and boost incomes, coupled with an extension of real estate incentives, would be key triggers for the sector in the Budget. A higher allocation to ongoing schemes targeted at the rural segment — be it the Pradhan Mantri Gram Sadak Yojana for the roads sector, the Pradhan Mantri Awas Yojana for housing, or the Mahatma Gandhi National Rural Employment Guarantee Act for rural employment — is expected to drive demand for the cement sector. As will allocating more funds to highways, expressways and other infrastructure projects. Read on...

8:40 AM

Budget 2022: Sops to boost investment in real estate sector, say brokerages

There are multiple expectations from firms in the real estate sector, the second largest employer after agriculture. Key among them are raising the exemption limit under Section 24 (b) of the Income Tax Act for interest on housing loans taken for self-occupied property from the current Rs 2 lakh to Rs 5 lakh to improve liquidity.

 

Brokerages also expect an increase in the safe harbour limit under section 50C of the I-T Act for home buyers purchasing a property below the circle rate by up to 20 per cent beyond June 30 for primary sale of residential units of value up to Rs 2 crore. This will help builders reduce their unsold ready-to-move inventory, especially Lodha (Macrotech Developers) and Oberoi Realty, as they are sitting on the most such units, they add. Read on...

8:08 AM

Budget 2022-23: Clarity on PSB privatisation is expected, say brokerages

Some clarity on the privatisation of two public sector banks, announced in last year’s Budget, is expected. Brokerages feel it is highly unlikely that the government will infuse capital in these banks, implying that these units will have to increasingly rely on market borrowings to meet funding requirements.

 

The government is also expected to extend the emergency credit line guarantee scheme, which has helped the MSME sector get greater access to credit during Covid. It may also provide some tax rebate to the sector. Read on...

8:08 AM

Budget 2022-23 Expectations: FPIs bat for equal taxation on dividends and buybacks

This year’s Union Budget must consider bringing a parity in tax treatment of dividends and buybacks, said market players.

 

The Budget in 2020 did away with the dividend distribution tax (DDT) in the hands of the company and instead decreed that tax be deducted at source (TDS) at 10 per cent on dividend income paid by a company to shareholders if the amount exceeded Rs 5,000 a year. This made dividends taxable in the hands of investors.

 

Indian companies, however, are still subject to 20 per cent tax (plus surcharge and cess) on share buybacks. READ ON...

7:53 AM

Budget Expecations 2022: Infra to real estate, what brokerages predict for key sectors

With spending on Covid-related measures and subsidies expected to moderate in FY23, this year’s Budget is likely to focus on infrastructure, with higher allocation to roads, railways and water segments. The Budget could also expand the scope of the PLI scheme, extend tax cuts for new manufacturing units and rationalise import duties. The services space, one of the sectors hit hardest by Covid, may get some support in the Budget. Any boost to consumption or a relief in taxes will be positive for stocks across the consumer and consumer discretionary segments. Edelweiss Research has a defensive bias in its portfolio and expects higher rural allocation to support consumption. The key sectors to look out for will be infra, services (travel), auto, cement, metals, real estate, financials, and capital goods. READ ON...

7:45 AM

Budget Expecations 2022: Brokerages expect duty cut on metals to spur margins

Reduction in import duty on raw materials and finished products of steel, and higher allocation under infrastructure and housing for all schemes in the Budget could augur well for the domestic industry.

 

Additionally, the government will have to carry out a balancing act on steel pricing to protect the MSME sector, which suffered significantly in early 2021, brokerages said.

 

Public capex has been relatively soft over the past few years and is expected to pick up from FY23. Construction and infrastructure sectors form 60 per cent of domestic steel demand. Read on...

7:42 AM

Budget 2022 Expectations: Rural stimulus need of the hour amid Covid-19 pandemic

Consumption, which was impacted during the pandemic, is expected to improve as the rate of vaccinations rises to cover the entirety of the country’s eligible population. Corporate taxation, which was reduced in 2019, is also expected to remain untouched in FY23.

 

Among key measures, the Budget is expected to hike allocation to the Mahatma Gandhi National Rural Employment Guarantee Scheme and other agricultural schemes, which will increase consumption. Read on...