Tech Budget 2022: 5G auction, Digital Rupee on Blockchain confirmed for 2022-23

Tech Budget 2022: Finance Minister Nirmala Sitharaman has taken the wraps off the Union Budget 2022-23. In the midst of vast budget across all industries, the technology sector also got a lot of attention.  5G auctions are happening this year, confirms the Finance Minister. Here’s what you will experience from the tech sector this year. 

Budget 2022 updates for Technology sector

Here is a collection of everything the the Union Finance Minister announced for the technology sector during the Union Budget 2022.

5G auction to be held in 2022-23

The Finance Minister has confirmed auction of 5G airwaves in the financial year 2022-23. All private sector network operators will be able to participate in the auction this year. Scheme for design led manufacturing in 5G will be launched as part of PLI scheme, said the FM.

e-Passports with embedded chip

The government will rollout e-Passports with embedded chip technology, announced the Finance Minister. The contracts for laying optical fiber in all villages will be awarded under the Bharat Net project.

Optical Fiber connectivity

Government announces 100 percent Optical Fiber connectivity network across the country, including villages.

Digital Currency based on Blockchain

Digital Rupee to introduced by the Reserve Bank of India, relying on Blockchain technology.  Digital Rupee will be introduced using blockchain technology and will be issued by RBI, starting 2022-23. It is said that the introduction of a central bank digital currency will give a big boost to the digital economy. Digital currency will also provide for a cheaper currency management system.

Tax on Virtual Digital Asset

30 percent tax on Virtual Digital Asset to be implemented. This means you will have to now pay taxes on NFT and other virtual tokens based on the blockchain technology. The Finance Minister says that gifting such an asset is also taxable in the hands of the recipient.

Domestic manufacturing boost for Technology 

Duty concessions are given to parts manufacturing of transformers, mobile phone chargers, and camera lens of mobile camera, among others. Customs duty rate have adjusted to facilitate manufacturing of wearables, hearable and electronic smart meters.