Taxes on crypto
In the last budget speech, Nirmala Sitharaman said that the Center will treat any kind of cryptocurrency or digital assets as assets only. And Sitharaman announced 30% tax on income and 1% TDS on its transactions. Also, the transfer of crypto or digital assets and profits from the same will be taxed. There is no tax deduction even if you make a loss. Also, if you receive crypto or digital currency as a gift, it is still taxable.
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However, the extent to which virtual currency transactions could be made public by the Center was questionable from the start. The question was also about extracting information from the block chain system. Incidentally, at one time, the growth of cryptocurrency in the country created a fold of thought on the forehead of the officials of the Union Finance Ministry. The Ministry of Finance along with the apex bank is seen practically wavering over the way the people of the country, especially the youth, were attracted to this virtual currency.
From the first day of December, the use of e-money was started in Delhi, Mumbai, Bengaluru and Bhubaneswar on a trial basis. Four banks have initially been selected to use RBI’s digital currency – State Bank of India, ICICI Bank, Yes Bank and IDFC Bank. Cities like Lucknow, Patna, Hyderabad, Ahmedabad, Guwahati, Gangtok, Kochi are second in this exam. But there is no Kolkata. Kotak Mahindra, Bank of Baroda, HDFC Bank are expected to enter the list of e-Rupee banks. But this e-money is cryptocurrency not. Governments have no control over cryptocurrencies. But, the supply of e-money is regulated by the Reserve Bank.
Why is there no crypto in the budget?
According to a section of market experts, crypto transactions in India have fallen drastically after the implementation of the new tax policy announced in the last budget. Cryptocurrency transactions in India fell by 70% within 10 days of the budget announcement last February. It drops to over 90% in the next three months. Also making TDS mandatory has also made it easier to identify Indian citizens doing crypto transactions. Incidentally, this information will start coming out with the filing of ITR of 2023.
What is your opinion about Union Budget 2023? How did Nirmala Sitharaman’s budget? Let us know in the comment box below. Comment in English or Bengali. If you don’t know the budget highlights, click to read them.