Everything we need to know about cryptocurrency and Budget 2022 INDIA

winy (62)in Project HOPE • 2 years ago

The government has come a long way in its stance on crypto last year. Many hope that this good idea about cryptocurrencies will continue to mean good things to cryptocurrencies and their various applications: Web3, dApps, Defi, and more.

The Indian government announced the Union Covenant 2022-23 earlier today when Finance Minister Nirmala Sitharaman brought much-needed clarity to millions of crypto investors in India. The government has set a fixed tax rate of 30% on all revenue generated by crypto trading while aiming to introduce Digital Rupee by 2022-23.

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Digital Rupee, India's first Central Bank Digital Currency (CBDC) project, will be the digital rupee - which will be completely controlled again. employed by the central government. But if you are not sure what the CBDCs mean, CoinSwitch Kuber brings the much-needed clarity to it.

Such types of money often have full confidence and support from the issuing authority. Therefore, the State Bank of India will remain a provider of Digital Rupee, as it does with regular notes and coins.

The Treasury Department, in these regulations, has proposed a 30% tax on the sale of all tangible assets, including cryptocurrencies and unsecured tokens. It also highlighted that losses on these crypto-assets cannot be set in the future. This means that any losses incurred during the trading of these assets will not be combined with other sources of revenue and will continue for years to come.

Gifts in the form of tangible amounts are also liable for tax, the recipient is liable for any such deductions.

Elaborating on the tax model of such tangible funds, the Minister of Finance explained that every crypto transfer over a certain amount of money will be liable for a 1% TDS deduction, which will help the authorities to track such cash flow in the economy.

Many see these measures as a guarantee of the government's acceptance of digital funding. Some also say the move strengthens the government's position not to allow private crypto as a legal tender while providing citizens with an alternative to the same fiat.

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Ashish Singhal, CEO of CoinSwitch Kuber, one of the largest crypto forums in India, welcomed the government's decision to introduce such CBDC in the Indian economy to accelerate digital production.

Many stakeholders, including CoinSwitch Kuber, have liked the government's approach to cryptocurrencies. “The budget provides tax clarification and reflects the government's intention to take a business-oriented approach while protecting the interests of consumers and the fund. We hope to work with the government to help bring the crypto-asset tax on par with other commodities and contribute to the central government's vision to stimulate economic growth, ”Ashish Singhal said on Twitter.

Prior to the budget, many prominent participants sought further clarification on confidentiality, including tax compliance with GST regulations. With these developments, it is clear that the government does not intend to "block" cryptocurrencies in the near future. Such recognition of tangible assets in the national budget and the imposition of clear tax laws have certainly made investors confident in their investment.

For most crypto investors out there, a 30% tax return is acceptable, even if it is higher than other categories of assets such as stocks or bonds. After recorded uncertainty about the fate of tangible funds, the mere fact that cryptocurrencies will remain here is a relief for many.

The budget is in line with India's belief in building a sustainable and technologically driven future. While this is not the equivalent of giving cryptocurrencies the legal tender status, the acceptance of cryptocurrencies alone is a big step forward. And advanced crypto platforms like CoinSwitch Kuber are more than just accepting this state of affairs.