Trending

Stories

Crypto Tax Regime Points at Future of Cryptocurrencies in India

Tidio Live Chat Software - Add Tidio live chat software to your website in minutes. Contact visitors and turn them into happy customers. Enhance their experience and boost your sales. Get it for Free

WP Rocket - WordPress Caching Plugin

Must Read

The announcement of the crypto tax regime by introducing flat 30 percent taxation on income from crypto and digital assets in the Budget 2022-23 indicates the possible future of cryptocurrencies as a financial asset in the domestic markets in the times ahead.

In her Budget speech on Tuesday, Finance Minister Nirmala Sitharaman said, “There has been a phenomenal increase in transactions in virtual digital assets. The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime. Accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent.”

Also Read

The decision to tax digital assets came as a major setback for the existing crypto investors in the next financial year and might discourage investments in cryptocurrencies.

Notably, as per industry estimates, there are 15 million to 20 million cryptocurrency investors in India, with total crypto holdings of around Rs 40,000 crore.

Elegant Themes - The most popular WordPress theme in the world and the ultimate WordPress Page Builder. Get a 30-day money-back guarantee. Get it for Free

A cryptocurrency is a virtual or digital money that takes the form of tokens or coins. The ‘crypto’ in cryptocurrencies refers to complicated cryptography that allows for creating and processing digital currencies and their transactions across decentralized systems.

The government is yet to confirm whether and how it will allow cryptocurrencies. However, sources in the Finance Ministry and experts in the industry have pointed out that cryptocurrencies will be treated as a digital asset in times to come.

At present, the government is preparing legislation to regulate the use of cryptocurrencies in the country.

Principal Economic Advisor Sanjeev Sanyal has said that the government has to take a balanced and comprehensive view on cryptocurrencies.

“This is a matter of some debate, both inside the government, in the Ministry of Finance, and even in the Parliament. Since there are some financial stability issues and concerns, a balanced view on this will be taken ultimately,” he said.

It must be noted that the Reserve Bank of India (RBI) has voiced “serious concerns” around private cryptocurrencies on the grounds that these may cause financial instability.

Meanwhile, the RBI will issue a new digital rupee powered by blockchain technology in 2022-23. “Introduction of a central bank digital currency will give a big boost to a digital economy. Digital currency will also lead to a more efficient and cheaper currency management system,” said the Finance Minister.

The Central Bank Digital Currency (CBDC) is a digital form of fiat currency that can be transacted using wallets backed by the blockchain and is regulated by the central bank.

CBDC is different from decentralized virtual currencies and crypto assets, which are not issued by the state and lack the ‘legal tender’ status. It enables the user to conduct both domestic and cross-border transactions which do not require a third party or a bank.

India would roll out its digital currency in the next financial year. However, in October 2021, Nigeria launched eNaira, which is a non-interest-yielding CBDC. The Bahamas and five other islands in the East Caribbean have already introduced CBD Cs.

iThemes WordPress Hosting

Stay updated

Subscribe to our newsletter and never miss an update on the latest tech, gaming, startup, how to guide, deals and more.

Latest

Stories

- Advertisement -
- Advertisement -

Latest

Grow Your Business

Place your brand in front of tech-savvy audience. Partner with us to build brand awareness, increase website traffic, generate qualified leads, and grow your business.

- Advertisement -

Grow Your Business

Get these business solutions, tools and services to help your business grow.
Elementor

Elementor -Join 5,000,000+ Professionals Who Build Better Sites With Elementor. Build your website with 100% visual design that loads faster and speeds up the process of building them.

WP Rocket

WP Rocket - Speed up your website with the most powerful caching plugin in the world. The website speed increase means better SEO ranking, user experience, and conversation. It’s a fact that Google loves a fast site.

Kinsta

Kinsta - If you are looking for WordPress managed hosting, Kinsta is in the leading front. Kinsta provides WordPress hosting for a small or large business that helps take care of all your needs regarding your website with cutting-edge technology.

OptinMonster

OptinMonster - Instantly boost leads and grow revenue with the #1 most powerful conversion optimization toolkit in the world. 700,000+ websites are using OptinMonster to turn their traffic into leads, subscribers, and sales.

Related

- Advertisement -
- Advertisement -
ChatGPT Reaches 100 Million Users in Two Months Microsoft’s Teams Get OpenAI-Based Features WhatsApp New Feature that Allows Users to Create Calling Shortcuts Instagram Working On Twitter-like Paid Verification Feature OnePlus Ace 2 Specs Exposed Online Realme GT Neo 5 Full Specs Revealed  Samsung Galaxy S23 Ultra: The New Android King Twitter To End Free API February 9 MLS Season Pass Now Available On Apple TV App Tesla To Increase Giga Shanghai EV Production to 20,000 Weekly 
OpenAI Releases Tool To Detect AI-generated Text Tesla Records Double Net Profit in 2022 India to Produce Upcoming iPhones: Trade Minister Japanese Professor Developed A Power Semiconductor made of Diamond Google Releases New Product for India’s Merchants Indian EV Startup Unveil Two AutoBalancing Electric Scooters OPPO Find X6 Pro Images Render via Weibo Sony Develops New Tech to Reduce Noise of Image Sensors