As the contribution of the virtual transaction has increased in the last few years. The Indian government proposed in the budget 2022 that RBI will launch a digital rupee. The digital rupee will be issued by the central bank in the upcoming fiscal year 2022-2023.
Top Budget Updates Related to Cryptocurrencies:
- Taxation on Crypto to be 30%
- Digital Rupee, powered by Blockchain to be introduced 2022-23
What will be taxed?
- Income from transfer of any digital asset to be taxed at 30%
- No expenditure deduction except cost of acquisition
- Loss from digital asset cannot be setoff
Crypto just became legal in India, with a 30% tax on income from sale of digital assets https://t.co/u0qmwJpMd9 #Budget2022 pic.twitter.com/zClfT7G0rT
— Bloomberg (@business) February 1, 2022
As the crypto holders in India have increased tremendously in recent years. The government digital asset transfers to be taxed at 30%. No deductions for computing income except acquisition cost. Losses cannot be set off against other income. While crypto gifts will also be taxed- FM
The 30% tax on cryptocurrency has disheartened many crypto enthusiasts and investors. Overall it also brings some positive news with it.
Firstly, the 30% tax on crypto signifies that the government has realised the importance and significance which the crypto will have in the next few fiscal years. Secondly, with the introduction of taxation of crypto brings rest to all the speculations regarding crypto ban.
Taxation on Digital assets raises questions?
The announcement of the digital rupee has created lots of confusion in the crypto community. The question is- where will the digital rupee stand as the other cryptocurrency like bitcoin, ETH and others are already in circulation.
The buzz has been created and there are questions that the government needs to answer such as
How can the government put a tax on crypto transcration without introducing a proper cryptocurrency bill in the Parliament?
Congress opposition leader Randeep singh Surjewala raises few question on twitter where he tweeted-
- Is cryptocurrency now legal, without bringing the crypto currency bill as you tax the crypto currency?
- What about its regulator?
- What about regulations of crypto exchanges?
- What about investor protection?
For now we can hope with time these questions will be answered by the government. Till then wait for our next update.
