Cryptocurrency: Finance Minister Nirmala Sitharaman has announced in the budget that income from cryptocurrencies will be taxed at the rate of 30 percent. The special thing is that the Central Bank i.e. Reserve Bank (RBI) is also going to launch its digital currency soon.
Tax on Cryptocurrency/Digital Rupee: The long-running uncertainty surrounding cryptocurrencies has been removed in Budget 2022. The Finance Minister has given clarity while making a big announcement on big cryptocurrencies. Finance Minister Nirmala Sitharaman has announced in the budget that income from cryptocurrencies will have to be taxed at the rate of 30 percent. The special thing is that the Central Bank i.e. Reserve Bank (RBI) is also going to launch its digital currency soon. In a way, this has been done to regulate cryptocurrency. Till now no tax was to be paid on cryptocurrencies. For this reason, there was an uncertainty about whether it would continue for investment in the country or it would be banned.
Tax will have to be paid even if there is a loss on cryptocurrency
Finance Minister Nirmala Sitharaman has made one more thing clear that while income on cryptocurrency will be taxed, even if there is a loss on it, tax will also have to be paid. Not only cryptocurrencies, income on transfer of any virtual assets will be taxed at 30 percent. At the same time, TDS has also been announced on transactions above a certain limit. For the time being, it is certain with this step that the government is not going to impose any kind of ban on cryptocurrency. But a heavy tax has been imposed on the income from this. This move of the government will increase transparency regarding investment in cryptocurrencies.
New asset class for investment
TradeSmart CEO Vikas Singhania says that in order to legalize cryptocurrencies, the Finance Minister has imposed 30 percent tax on cryptocurrencies. Now traders can trade in this asset class without any fear. The budget has removed the legal uncertainty over cryptocurrency trading. People can trade in crypto but they have to pay tax. However, it is to be seen that if corporates trade in crypto, then corporate tax is applicable or 30 per cent tax or whichever is higher.
Country’s first digital currency will come soon
Finance Minister Nirmala Sitharaman has announced the introduction of digital currency in the country from the year 2022-23 during the budget. The Finance Minister said that with the introduction of ‘Digital Rupee’ by the Reserve Bank, there will be a lot of improvement in currency management in the country.
BeSingular’s founder and CEO Nitesh Jain says that the government’s stand has been progressive in this budget. The government is looking ahead, the biggest example of which is the announcement of the first digital currency in the country. The regulated digital currency means that it is forward looking and in the spirit of using blockchain and other exponential technologies.
Let us tell you that the government has been considering bringing a bill to regulate cryptocurrencies and other virtual digital assets in the country for a long time. This bill is also known as ‘Crypto Bill’. Earlier this bill was to be brought in the winter session.
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