The News Minute

Indian Union Budget 2022-23 and Digital Transformation

Indian Finance Minister Nirmala Sitaraman has taken the wraps off the Union Budget 2022-23 in Lok Sabha today (1st February 2022). In her second paperless budget, amidst the mix of multiple industries she focused alot on digitization, fintech and technology. Here are the top highlights for the technology sector:

  • Spectrum auctions will be conducted in 2022 to roll out 5G mobile services within 2022-2023
  • Optical fiber to be laid out in all villages by 2025
  • Domestic manufacturing boost for technology
  • e-Passport with embedded chip will be rolled out in 2022-23
  • 75 Digital banking systems in 75 districts by scheduled commercial banks
  • Digital Rupee, backed by blockchain to be launched by Reserve Bank of India by 2023
  • Any income from transfer of Virtual Digital Asset to be taxed 30%
  • Gift of Virtual Digital Asset will also be taxed in the hands of the recipient
  • TDS at 1% on payments made on transfer of Virtual Digital Asset
  • Loss on Virtual Digital Asset cannot be set off against any other head of income
  • Chemical-free natural farming and use of kisan drones to be promoted for Indian farmers
  • Digitization of land records would be expedited to bring more transparency in agriculture sector
  • Schemes for ‘Digital and Hi-Tech Services for Farmers’ fund to be facilitated through NABARD to finance start-ups for agriculture and rural enterprise providing tech to farmers
  • Scheme in PPP mode to be introduced for delivery of digital and hi-tech services to farmers with involvement of public sector research and extension institutions and stakeholders of agriculture value chains
  • Digital University announced to provide universal education across country
  • Digital Desh e-Portal will be launched for the skilling, reskilling and upskilling of the youth
  • A national open platform for the digital health ecosystem will be launched