Budget 2022 is death of cryptocurrency in India: Rakesh Jhunjhunwala

cnbctv18.com:

Finance Minister Nirmala Sitharaman unveiled her fourth Union Budget for the fiscal year 2022-23. Along with a heavy capex-centric emphasis, Sitharaman included a slew of provisions with regard taxation of cryptocurrencies in the Budget.To understand what this would mean for the future of cryptos going ahead, CNBC-TV18 spoke to the big bull himself, Rakesh Jhunjhunwala, partner, Rare Enterprises.Jhunjhunwala believes India is following China with respect to its provisions on digital currency.

Highlighting the point further, he explained that Budget 2022 has infact made RBI the sole authority capable of promoting digital currency, thereby killing all other cryptos in the process.“I think what government wants to do is that it wants the Reserve Bank of India (RBI) to promote digital currency and kill all other currencies, just like China is doing, which in a way is the right approach also.”Meanwhile, in her Budget speech announced earlier in the day, FM Nirmala Sitharaman  said that any income from the transfer of any virtual digital asset shall be taxed at a flat rate of 30 percent. Further, no deduction will be available with respect to any expenditure or allowance incurred while computing such income except for cost of acquisition (COA).

Also, loss from transfer of any other digital asset will not be allowed to be set off against any other income. She also explained that any gift of virtual digital asset will be taxed in the hands of the recipient.Additionally, TDS (tax deducted at source) of 1 percent will be levied on payment of consideration made in respect of such transfer over and above the specified monetary threshold as mentioned in the Finance Bill.For all the latest updates on Union Budget 2022, follow our LIVE