In a major boost to crypto players, Finance Minister Nirmala Sitharaman in her Budget Speech 2022 said 30% tax would be charged on income from transfer of virtual digital assets. The FM said no set off would be allowed in case of losses.
For a few months now, the crypto industry in India has been demanding clarity on taxation. She also said that gifts in virtual digital assets would be taxed in the hands of the recipient.
Also, a blockchain-based Central Bank Digital Currency (CBDC) will be introduced by 2023, Sitharaman said. This will be backed by the Reserve Bank of India (RBI).
The digital rupee move will give a big boost to the economy, Sitharaman said.
Many countries are now launching their own digital currencies as Bitcoin and other cryptocurrencies are gaining prominence across the world.
Earlier, Principal Economic Adviser Sanjeev Sanyal had said that the government would take a balanced view on the issue of regulation of cryptocurrencies. Last year, in November, Prime Minister Narendra Modi held a meeting on cryptocurrencies with senior officials and they discussed many regulatory steps that could be taken on cryptocurrencies.
Many crypto players in India have been witnessing record volumes in transactions for the past few months now. They have been introducing new tokens/coins to attract millennials and new-age investors.