Crypto currency Latest update in GOI Budget 2022

By: AMRITESH

Indian government has now cleared the long prevailing confusion in the crypto market in Budget 2022.

01

Digital currency will lead to a more efficient and cheaper currency management system. It is therefore proposed to introduce a digital ₹ using Blockchain and other technologies, to be issued by RBI, starting 2022-23.”

FM statement 

02

Government of India has announced a Taxation slab of flat 30% on all the transection made in crypto or virtual digital assets.

GOI Taxation on Crypto

03

RBI is going to launch its own crypto by the name of digital rupee during FY2022-23. By 2023, a Blockchain-based and RBI-backed Central Bank Digital Currency (CBDC) will also be introduced.

India’s Crypto Token

04

There will be a TDS on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold.

TDS on Crypto transactions

05

Any Gift of virtual digital asset transferred from one owner to other has also been proposed to be taxed in the hands of the recipient.

Tax on Digital Gifting

06

It has been clarified that the loss from transfer of virtual digital asset cannot be set off against any other income.

No compensations 

07

FM said – “No deduction in respect of any expenditure or allowance shall be allowed while computing such (transfer of any virtual digital asset) income, except the cost of acquisition".

No Tax deductions

08

This Bill was supposed to create a facilitative framework for creation of the official digital currency to be issued by the RBI. The Bill also seeks to prohibit all private cryptocurrencies in India (with exceptions).

Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 

09

The future of all the existing crypto tokens is still not clear inside India as we wait for the official induction of the Cryptocurrency regulation Bill.

Future of Bitcoin & other Tokens

10

The 30% tax on Digital assets and GOI launching its own cryptocurrency is an indication that government will not permit Cryptos as currency very soon.

The Takeaway