The 2018 Union budget, for the first time, mentioned an intent to tax digital businesses by modifying Section 9 of the Income Tax Act. In 2016, the government also introduced the equalization levy. India could emerge as a trailblazer in defining norms to tax businesses that have large user bases without a significant physical presence in a country. There is also a distinct possibility of recognizing data as an asset class under the Indian Accounting Standards 38. In 2011, the World Economic Forum and Bain published a joint study identifying personal data as a “new asset class” leading to the “data is oil” narrative. India can become a significant stakeholder in shaping the rules of this data world. It has become data rich before it has become economically rich. With over 450 million internet users, it ranks amongst the top 5 per capita data consumption economies and is now the top mobile data user in the world.

(Live Mint)