Regarding the 30% tax on Central Bank Digital Currency (CBDC) and digital asset earnings, Nirmala Sitharaman says that this will give a big boost to the economy. However, many investors believe that their earnings from cryptocurrencies are not so much that they will now have to pay tax.
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Regarding tax, Nirmala Sitharaman says that “There has been a huge increase in transactions in virtual digital assets. Due to this, it has become mandatory to issue a special tax system for virtual digital assets. I propose to provide that Income by way of transfer of any virtual digital 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 in respect of transfer of virtual digital asset. The cost of acquisition cannot be set off against anyone for loss arising out of
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.
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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