The Union Budget 2022 includes 5G auctions, Digital Rupee and 30 per cent of taxation on crypto assets and other major learnings
Union Budget 2022-HIGHLIGHTS
To 5G auctions Crypto tax, Digital Rupee and more important takeaways for those who love technology of the Union Budget presented by the Hon’ble Finance Minister, Nirmala Sitharaman on the Tuesday.
The auction of spectrum is scheduled to take place in 2022 to facilitate the introduction for 5G services in India.
Government will introduce a scheme for design-led manufacturing that will build an effective ecosystem for 5G, as part of PLI.
Digital Rupee is based on blockchain and other technology to issue by RBI beginning in 2022-23.
Hon’ble Finance Minister Nirmala S. Sitharaman introduced the Union Budget in Parliament on Tuesday. In the Union Budget included some major announcements regarding auctions for 5G as well as internet connectivity in rural areas, Digital Rupee, a cryptocurrency based on blockchain and other. If you didn’t catch the Finance Minister’s remarks today Here’s a brief summary of the major announcements made for those who are interested in technology.
In all the announcements, the launch of 5G mobile service was the most significant. This is something consumers, telecom players as well as handset makers have been waiting for for a few many years.
Union Budget 2022- We have now a timetable for 5G.
Yes, Hon’ble Minister of Finance Nirmala Sitharaman, during her Union Budget speech in Parliament on Tuesday, discussed the ways that 5G technology could facilitate expansion and provide opportunities for employment.
She said the mandatory auctions for spectrum would take place in the coming year to ease the rollout of 5G service in 2022-23 by private telecom operators.
Furthermore the government has announced that for the rollout of 5G it will introduce an initiative for manufacturing based on design to improve the 5G ecosystem in the Production Linked Incentive (PLI) Scheme.
Union Budget 2022 – Villages to be connected to broadband connectivity
A major announcement made during the budget speech focused on the fiber optic cable to be installed in the villages in 2025. “To allow accessible broadband, as well as mobile service expansion in remote and rural regions, five percent of annual revenues from the Universal Service Obligation Fund will be allotted. This will help to encourage R&D as well as commercialization of new technologies and solutions” Financial Minister, Nirmala S. Sitharaman announced during her speech.
The government is aiming for villages to have similar access electronic services as those who live in urban areas.
Through PPP in the form of PPP, the government will provide contracts to lay optical fibre throughout the villages in the Bharatnet project between 2022 and 23. It could be the time for to take the initiative, however the government has set the date for this currently, as it plans to complete the work in 2025.
Union Budget 2022 – Digital Rupee
India will launch the Digital Rupee that is based in blockchain-based technology. This is certainly one of the announcements that has been in the pipeline for a while. The Finance Minister Nirmala Sitharaman, during her speech, emphasized that the launch of Central Bank Digital Currency (CBDC) could give a significant lift to the economy of digital.
The Digital Rupee is based on blockchain and other technology to issue by the Reserve Bank of India (RBI) beginning in 2022-23.
“Digital currency can be a great way to create more effective and cost-effective the management of currency,” she added.
Union budget 2022 -Taxation on digital assets
The next major move that could cause shocks for those who invest in cryptocurrency exchanges is the idea of taxation of digital assets that are virtual. In simple terms, the matter simply, a tax on your crypto investments and it’s something that’s been anticipated for quite a while.
“There is an astronomical rise in transactions of digital assets. The volume and regularity of these transactions has forced the need to create an appropriate tax system,” Finance Minister Nirmala Sitharaman stated in her speech.
The government has suggested an additional tax of 30% on the income earned that comes from the exchange of digital asset.
In addition the government has made clear that there will not be a deductions for any expense or allowance which is allowed when making calculations for such income, excluding costs of purchase.
One of the main aspects which FM made was that FM mentioned was that crypto-investors would not be able to write off losses caused by the transfer of virtual assets against other income.
“Further to record the details of transactions I’m also planning to establish TDS on any payment related to the transfer of virtual assets at the rate of one per cent of the value over a threshold of monetary value,” she added. In addition, the government has also stated that the transfer of a virtual digital asset is expected to be taxed at by the person receiving it.