United Budget 2022-23: Indian Crypto Party Imposing 30% Tax on Digital Assets

New Delhi, February 1: The government virtualized on Tuesday to attack millions of hard-private crypto exchanges and apps that are seducing young people, especially to invest their hard-earned money in Bitcoin and other digital tokens. Announced a 30% tax on income from the transfer of digital assets, specifying that deductions and tax exemptions are not allowed.

Treasury Minister Nirmara Sisaraman, who emphasized the tremendous increase in transactions of virtual digital assets and presented a budget for 2022-23, will establish a specific tax system depending on the size and frequency of these transactions. Said that is essential.

“Therefore, when it comes to taxing virtual digital assets, we propose that all income from the transfer of virtual digital assets be taxed at a tax rate of 30%,” she said, clearing the air of taxation on cryptocurrencies. .. “Except for acquisition costs, no deductions for expenditures or allowances are allowed while calculating such income, and the loss from the transfer of virtual digital assets cannot be offset against other income,” she said. Emphasized. Union Budget 2022: India will acquire its own digital currency by RBI next year, says FM Nirmala Sitharaman..

To keep track of transaction details, she also offers TDS at a percentage of such consideration above the monetary threshold for payments made in connection with the transfer of virtual digital assets. I suggested to do it. “It has been proposed that gifts of virtual digital assets will also be taxed in the hands of the recipient,” the Finance Minister said.

“There is no cryptocurrency charge, but the taxation of 30% of the gain on the transfer of virtual assets and the additional 1% tax collection at the time of transfer means that the parties appear to have ended up in exchange for the crypto assets. Former Union Finance Secretary Subhash Chandra Garg, a key figure behind the drafting of the original crypto bill. The cryptocurrencies and regulations of the official Digital Currency Bill 2021, which seeks to ban all private cryptocurrencies in India, were to be submitted during the parliamentary winter session, which began on 29 November. Once a year as the chorus about the legality of digital coins and how to protect investors’ money grows. With an estimated 15 to 20 million crypto investors, the size of the Indian crypto market is unclear. Union Budget 2022–23: Cryptocurrency System Shows the Future of Cryptocurrencies as India’s Financial Assets..

According to a report at the end of last year, Indians have invested more than 6 rupees in crypto assets so far. This is a very suspicious number as there is no real idea of ​​the type of money sent via crypto exchange. According to Bhaskar Majumdar, managing partner of Unicorn India Ventures, taxes on cryptocurrencies / NFTs will be legalized and users will not be able to circumvent taxes and other financial rules.

The abuse of digital coins on the dark web raises serious concerns about terrorist acts, drug trafficking, money laundering and howara-based transactions by militant groups. This poses a serious threat to national security and poses a major security challenge. Indian agency.

Nischal Shetty, founder and CEO of WazirX, one of the major crypto exchanges, said tax clarification is a welcome move. “Overall, it’s very reassuring to see our government adopting a progressive stance of moving in the direction of innovation. The government has significantly justified the industry by introducing taxes. “I will.”

(The above story was first published on LatestLY at 4:58 pm IST on February 1, 2022. For news and updates on politics, the world, sports, entertainment and lifestyle, please visit our website. Please log on to. latestly.com).