Indian government at the budget 2022-23 has proposed calibration of customs duty rates for electronics including wearable devices, hearable devices and electronic smart meters to boost domestic manufacturing.
The government also announced that duty concessions are also being given to parts of transformer of mobile phone chargers and camera lens of mobile camera module and certain other items in an aim to enable domestic manufacturing of high growth electronic items.
Digital Rupee
The Government also proposed that it is planning to introduce Digital Rupee issued by the Reserve Bank of India starting 2022-23. The Finance Minister said that the Central Bank Digital Currency (CBDC) will give a big boost to digital economy and will also lead to a more efficient and cheaper currency management system. The Digital Currency will use blockchain and other technologies.
The Government didn’t pass a crypto bill, but in the 2022-23 budget today, it has announced a specific tax regime for virtual digital assets. The government has announced that any income from transfer of any virtual digital asset will be taxed at the rate of 30%. It added that there will be no deduction in respect of any expenditure or allowance while computing such income, except cost of acquisition. Further, loss from transfer of virtual digital asset cannot be set off against any other income, said the government.
In order to capture the transaction details, there will be TDS on payment made in relation to transfer of virtual digital asset at the rate of 1% of such consideration above a monetary threshold. Gift of virtual digital asset will also be taxed in the hands of the recipient.