Finance Minister Nirmala Sitharaman was seen shying away from speaking about what was most awaited in the General Budget 2022-23. He did not even use the word cryptocurrency in the entire budget speech, but his announcement on virtual currency and digital asset is being considered in this direction.
After the Finance Minister announced a 30 percent tax on income from virtual currency or digital, after which the speculation about the legalization of cryptocurrencies has increased. However, experts say that even though the government has taxed virtual currency, it has not said anything about its legality. In such a situation, cryptocurrency is not yet legal in India.
Finance Minister made this announcement
Union Finance Minister Nirmala Sitharaman has made a big announcement regarding virtual currency or cryptocurrency in her budget speech. He announced that now it has been decided to levy tax on transactions of cryptocurrencies. Under this, a tax of 30 percent will have to be paid on the income from crypto. The Finance Minister said that changes have been made in the taxation of virtual digital assets. Transfer of any such property will attract 30 per cent tax. No discount will be given. After this announcement by the Finance Minister, the question arises whether crypto has been allowed in the country.
What is Digital Currency?
Crypto currency is actually a means of financial transactions. Just like the Indian Rupee and the US Dollar, the only difference is that it is virtual and not visible, nor can you touch it. That’s why it is also called digital currency. Its entire business is done through online medium only. While there is an intermediary between the transactions of any country’s currency, such as the central bank in India, but the business of crypto has no intermediary and is conducted online by a network. This is the reason why it is known as unregulated market, which makes someone rich in an instant and throws them to the ground in a jiffy. But despite this ups and downs, the popularity about it is increasing.
Long waiting for cryptocurrency bill
It is worth noting that the government has been working for a long time to manage cryptocurrencies in the country and a draft bill has also been prepared regarding this. However, it could not be introduced in the winter session. While taxing the income from crypto, the Finance Minister also announced the launch of the country’s digital currency this year. He said that this year RBI will issue a digital rupee using blockchain and other technology. This will give a big boost to the economy. According to a report, there are 105 crore crypto investors in India. Let us tell you that there has been speculation about cryptocurrency bills coming in India for a long time.
What Are Cryptocurrency Experts Saying?
Wazir X CEO Nischal Shetty says that India is now on its way to legalize cryptocurrencies. The biggest news is that a blockchain-based digital rupee will be launched in India as well. This will help in the adoption of cryptocurrencies and this step will take India a long way in innovation. It is interesting that the government has accepted cryptocurrencies as an asset. During her speech, Finance Minister Nirmala Sitharaman announced about it in the name of virtual digital currency. This will mark the identity of the crypto ecosystem in India. We hope that this move will also remove the ambiguity for banks and enable them to provide financial services to the crypto industry. The move to tax cryptocurrencies is welcome. At the same time, L Badri Narayanan of Lakshmikumaran & Sreedharan Attorneys says that virtual digital assets include NFTs and cryptocurrencies, for which 30 percent tax has been declared on transfer. No deduction has been made except the cost of acquisition. This move of the government has eased the concerns of those investing in crypto currency.
understand the whole math like this
Suppose you have invested one thousand rupees on some virtual digital currency and its value has become 1500 rupees, then you have to pay 30 percent tax on 500 rupees. Ankur Garg, CEO of blockchain startup Vardan and Anshul Sharma, CEO of company Fluper, say that after the announcement of the government, the question is arising whether cryptocurrency has become legal? The answer is – not now. Taxes also have to be paid on illegal economic activities. For example, if there is a raid in the case of unaccounted property, then the government has the right to collect tax on the money seized during that time. Right now the government is in the discussion stage on cryptocurrencies