30% Tax on Digital (Crypto) Assets in Union budget: Finance Minister Sitharaman
30% Tax on Digital (Crypto) Assets
Finance Minister Nirmala Sitharaman has thrown some light into her Union Budget announcement to tax profits from digital assets transactions at 30 percent. Digital assets, which includes the “crypto world”, according to the Finance Minister, are not to be confused with digital currency, which only the central bank can issue.
Union Budget 2022 proposed that the transfer of any virtual or cryptocurrency asset will be taxed at 30 percent. No deduction except the cost of acquisition will be allowed and no loss in the transaction will be allowed to carry forward, in addition to a 1 percent TDS that will be charged on payments made using digital assets in order to keep a track of transactions the finance minister said in Budget 2022.
Gifts in crypto and digital assets will also be taxed. The tax proposals will come in effect from April 1, 2022, after the passage of the Union Budget in Parliament.
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Digital Rupee in Union Budget 2022
While presenting the Union Budget on Tuesday, Finance Minister Nirmala Sitharaman said the Digital Rupee will be issued by the RBI using blockchain technology starting from the next financial year. The introduction of digital currency by the central bank will lead to cheaper and faster currency management.
The introduction of a central bank digital currency will give a boost to the digital economy.
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