The Indian government has set its own tax base related to cryptocurrencies.
In her budget speech on Tuesday, Finance Minister Nirmala Sitharaman confirmed that she will levy a 30 per cent tax on digital and virtual assets from the 2022-2023 fiscal year.
Sitharaman stated in her speech in Parliament:
Any income from virtual digital assets is taxable at 30 percent.
In addition, there will be no deductions and tax credits for digital currency income available to Indian taxpayers.
Any crypto-related gifts will also be taxed and paid by the recipient.
To properly track all crypto transactions within the country, the government will also impose a 1 percent tax deduction for the person responsible for tracking all cryptocurrency transfers.
But for now, it is not clear how all these rules will be implemented in wallets that are not traded and are held and stored only for cryptocurrencies.
In addition, the Finance Minister emphasized that crypto holders cannot compensate for their losses from cryptocurrencies with the gains that are allowed to stock investors.
And there will be no discount except for the purchase cost.
India’s plan regarding CBDC:
The budget speech revealed that the Reserve Bank of India (RBI) will introduce a central bank digital currency (CBDC) in the next fiscal year.
But details regarding the timeline for this project have not yet emerged.
The Finance Minister stated:
The introduction of a central bank digital currency will give a huge boost to the digital economy.
Digital currency will also lead to a more efficient and cheaper currency management system.
Meanwhile, the Indian government has drafted a bill to regulate the burgeoning crypto industry.
But the cryptocurrency bill was not included in the parliamentary schedule for the ongoing session that began on Monday.
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