By: AMRITESH
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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.”
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Government of India has announced a Taxation slab of flat 30% on all the transection made in crypto or virtual digital assets.
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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.
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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.
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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.
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It has been clarified that the loss from transfer of virtual digital asset cannot be set off against any other income.
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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".
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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
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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.
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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.