Finance minister of India, Nirmala Sitharaman declared the budget for the year 2022 and with this new Budget India recognizes cryptocurrency to be a digital asset and plans to tax the same by 30%.
This new budget have placed any income from cryptocurrencies in the highest tax bracket, as well as the losses arising from the sale of these assets can not be offset against any other income.
With India retaining the top position of the highest number of Crypto investors, as per Reuters report, Industry estimates suggest about 15 to 20 million crypto investors in India with total holdings of around 400 billion rupees which estimates to 5.37 billion dollars. On the other hand this tax regulation seems to have put the wild estimates of an outright ban on Crypto by the country to rest.
This optimistic step towards crypto adoption paves way to more corporates and financial institutions to enter the crypto market and signals to a wide spread adoption of the same.
Source: India Today
As per further reports India’s Finance minister revealed that Central bank will introduce its own digital currency somewhere between April 1,2022 and March 31, 2023 which will run using blockchain and other supporting technology. This Central bank’s digital currency will also lead to a more efficient and cheaper currency management system as per the finance minister and will also give a big boost to the digital economy.
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