India Works Towards Crypto Legalisation with 30% Tax

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On 1st February India’s Finance Minister Nirmala Sitharaman, mentioned in her speech about India’s budget for 2022-2023, the “phenomenal increase in transactions in virtual digital  assets.”. With India’s exponential growth of crypto transactions the past year, the government's attention to it was expected. In her speech she proposed 30% taxation on any income from the transfer of digital assets, and also introduced 1% of  tax deduction at source for every transaction made beyond a threshold limit. If any losses are made however, no deductions can be made as the “loss from transfer of virtual digital assets cannot be set off against any other income.” according to the budget proposal.

Finance Minister Sitharaman also proposed that the reserve bank would come up with a new digital rupee by 2022-2023. The CBDC (Central Bank Digital Currency)  would be powered by the blockchain technology once it begins trading and will remain permanent. Sitharaman said that the introduction of the digital rupee “will give a big boost to digital economy,” and that “Digital currency will also lead to a more efficient and cheaper currency management system. “.

This is a big step away from The Cryptocurrency and Regulation of Official Digital Currency Bill, that from previously published texts we have understood it was planned to “ban most private cryptocurrencies” except for certain assets meant to promote the “underlying technology of cryptocurrency and its uses”.

This government proposal shows a big shift in how the government views cryptocurrency and its legitimacy. Instead of banning cryptocurrency, their outlook on crypto assets seems to have shifted to the regulation of it instead, enabling the legal investments and usage of crypto to billions of people. This is an interesting change of expected events and it might even lead to more countries considering the exploration of CBDCs.

What do you guys think? Let us know in the comments on our instagram or facebook!

All content on Kryptos serves general informational purposes only. It's not intended to replace any professional advice from licensed accountants, attorneys, or certified financial and tax professionals. The information is completed to the best of our knowledge and we at Kryptos do not claim either correctness or accuracy of the same. Before taking any tax position / stance, you should always consider seeking independent legal, financial, taxation or other advice from the professionals. Kryptos is not liable for any loss caused from the use of, or by placing reliance on, the information on this website. Kryptos disclaims any responsibility for the accuracy or adequacy of any positions taken by you in your tax returns. Thank you for being part of our community, and we're excited to continue guiding you on your crypto journey!

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India Works Towards Crypto Legalisation with 30% Tax

By
On
10-02-2022

On 1st February India’s Finance Minister Nirmala Sitharaman, mentioned in her speech about India’s budget for 2022-2023, the “phenomenal increase in transactions in virtual digital  assets.”. With India’s exponential growth of crypto transactions the past year, the government's attention to it was expected. In her speech she proposed 30% taxation on any income from the transfer of digital assets, and also introduced 1% of  tax deduction at source for every transaction made beyond a threshold limit. If any losses are made however, no deductions can be made as the “loss from transfer of virtual digital assets cannot be set off against any other income.” according to the budget proposal.

Finance Minister Sitharaman also proposed that the reserve bank would come up with a new digital rupee by 2022-2023. The CBDC (Central Bank Digital Currency)  would be powered by the blockchain technology once it begins trading and will remain permanent. Sitharaman said that the introduction of the digital rupee “will give a big boost to digital economy,” and that “Digital currency will also lead to a more efficient and cheaper currency management system. “.

This is a big step away from The Cryptocurrency and Regulation of Official Digital Currency Bill, that from previously published texts we have understood it was planned to “ban most private cryptocurrencies” except for certain assets meant to promote the “underlying technology of cryptocurrency and its uses”.

This government proposal shows a big shift in how the government views cryptocurrency and its legitimacy. Instead of banning cryptocurrency, their outlook on crypto assets seems to have shifted to the regulation of it instead, enabling the legal investments and usage of crypto to billions of people. This is an interesting change of expected events and it might even lead to more countries considering the exploration of CBDCs.

What do you guys think? Let us know in the comments on our instagram or facebook!

All content on Kryptos serves general informational purposes only. It's not intended to replace any professional advice from licensed accountants, attorneys, or certified financial and tax professionals. The information is completed to the best of our knowledge and we at Kryptos do not claim either correctness or accuracy of the same. Before taking any tax position / stance, you should always consider seeking independent legal, financial, taxation or other advice from the professionals. Kryptos is not liable for any loss caused from the use of, or by placing reliance on, the information on this website. Kryptos disclaims any responsibility for the accuracy or adequacy of any positions taken by you in your tax returns. Thank you for being part of our community, and we're excited to continue guiding you on your crypto journey!

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