What is Crypto currency ?
Crypto currency is an encrypted data string that denotes a unit of currency and is muddled through the use of advanced encryption techniques known as cryptography.
This currency is monitored by Blockchain which is basically just a peer to peer network, which also serves as a secure ledger of transactions, e.g, buying, selling,, and transferring. Crypto currency made the leap from being an academic concept to virtual reality with the creation of Bitcoin in 2009.
Crypto trading in India
Until the recent developments in India government hadn’t cleared weather crypto trading was legal or illegal but after the 2022 budget was discussed in the Lok Sabha Government cleared that it doesn’t treat trading in crypto assets as illegal, a day after that government announced 30% tax on such transactions which is being scrutinized by a major number of population here in India, over the 1 lakh tweets #reduce cryptotax is trending on twitter controversially. The CBDT Chairman JB Mohapatra said “I don’t think that 30% tax on crypto currency is high, companies are being taxed at 30%”
India has also announced its own digital currency that will be launched and regulated by RBI. On February one while announcing the budget 2022-2023 in Lok Sabha , the Union finance minister Nirmala Sitharaman confirmed that India is getting a centralized digital currency in the financial year 2022-2023.
A Lot of financial experts are saying that the taxation policy on India’s own crypto currency digital rupee is going to be different from the other international crypto’s like Ether, Litecoin, Bitcoin and Monero etc.
Key Points After BUDGET 2022
- 30% tax to be paid on returns from trading/investing in digital assets.
- Any losses from transfer of virtual digital assets can’t be set off against any other income
- 1% TDS on Crypto transactions
- No deduction allowed while computing income
- Gifts of virtual assets also taxable
Most Crypto places are calling this budget as recognition of Crypto legally in India but implement of tax is also not pleasing.
What are your thoughts on this? Please comment below the world would like to know.
