Apart from this, during her budget speech, Sitharaman has informed that the transfer of any virtual digital asset will be taxed at the rate of 30 percent. Sitharaman says that “There has been a significant increase in transactions in virtual digital assets. Due to these, it has become mandatory to issue a special tax system for virtual digital assets. I propose to provide that any virtual digital asset Income by way of transfer of asset shall be taxed at the rate of 30 per cent. No deduction shall be allowed in respect of any expenditure or elements while computing such income, except loss arising out of transfer of virtual digital asset. The cost of acquisition cannot be set off against anyone.
The Finance Minister further said that India will get the foundation for the next 25 years from this budget. Economic growth is also expected to be 9.2% in the next financial year. Not only this, in the current year also, India’s economic growth has been estimated at 9.2%.
Unlike cryptocurrencies, digital currency is more stable and backed by authorities. Cryptocurrencies and stablecoins are decentralized, which cannot be the case in digital currency issued by the country.
A virtual cryptocurrency offers better privacy than mainstream digital payment methods, which are used by terrorists, according to a study report by the Financial Action Task Force (FATF), an intergovernmental organization set up to combat money laundering and terrorism-related financing. Can be done for wrong activities by organizations and criminals.
Most importantly, because cryptocurrencies are decentralized, central banks will not have their most essential functionalities to control the money supply in the economy.<!–
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