Crypto players cheer Budget announcements; high tax may hit volumes

economictimes.indiatimes.com:

Along with this, she proposed that the Reserve Bank of India (RBI) will introduce its digital currency in the new financial year, which will lead to a more efficient and cheaper currency management system. The government also laid out detailed provision on tax deducted at source (TDS) at a rate of 1 per cent levied on payments made on transfer of digital assets.

Did you Know?

Sunny Leone took the lead among Indian actors to secure her digital assets when she broke the news about her association with NFT, two months back. This made her the first Indian actress to mint NFTs

The loss arising from the sale of the virtual assets cannot set off against any other income, the government cleared. Also, gifting of crypto tokens and the virtual assets would be taxed at the hands of the recipient. The given major announcements along with the clarity and, above all, the recognition from the government has boosted the morale of the crypto players. The taxation of virtual digital effects and the proposed taxed rate of 30 per cent is a sign of acceptance for virtual digital currency, said Raj A Kapoor, Founder of India Blockchain Alliance. «The very fact that we have taxation lends tangibility to acceptance albeit cautious,» he added. Also, the announcement of RBI led Central Bank Digital Currency (CBDC) based on blockchain technology is a key endorsement of the technology and the opening up of tokenised economy going forward. «Following both the announcements on the crypto sector, the industry is having 'dono hathon me laddoo, with Brijwasi (crypto players) ki chandi'», said Kapoor. However, other industry players said that one should wait for certain things for more clarity for the proposed bill which will