Budget 2017 promised a lot in terms of incentives for digital economy. But for software engineers Anto Thomas and Devi Sasikumar, it was disappointing. “It had nothing new for us. For those of us who usually go for cashless transactions, it would have been great if the government had announced withdrawal of charges levied on online transactions It was disappointing that the government made no announcement on this. Banks charge us for more than five transactions online,” Thomas said.
Popularising the BHIM App through cash back schemes was unlikely to make a big difference to those who already use services like Paytm apart from credit, debit cards and net banking. “Digital services offered by private players have tie-ups with e-commerce websites and most people would go for this rather than a government app,” felt Thomas.
Something they do endorse is the government’s plan to withdraw service charges on e-ticket bookings through IRCTC. “Most people book train tickets online. We hope the same is extended to other online transactions as well. If the government wants more people to embrace digital payments, charges levied on transactions should be withdrawn,” Thomas stressed.
What actually benefits these two and others like them is the reduction in tax rate for income between Rs 2.5 lakh - Rs 5 lakh. It is a happy respite.
Like many, Thomas and Sasikumar are sceptical about digital transformation in rural areas. “High speed broadband connectivity with wi-fi hotspots in gram panchayats is a great idea. We hope these plans materialise and not just remain on paper. The government has also announced a limit of Rs 3 lakh for cash transactions. This could go a long way in streamlining unauthorised bulk transactions by businessmen and political parties if implemented well,” said Sasikumar.