Budget 2022: What is the government’s plan regarding cryptocurrencies?, so 30% tax imposed on cryptocurrency

Cryptocurrency- India TV Paisa
Photo:PIXABAY

Cryptocurrency

Highlights

  • We have imposed 30% tax on the income generated from cryptocurrencies – Finance Minister
  • RBI to introduce blockchain technology based digital rupee in 2022-23

New Delhi: Finance Minister Nirmala Sitharaman said on Tuesday that discussions are going on on crypto currency and after that we will consider making laws and regulations on it. Speaking to reporters after the budget, Sitharaman said, “Deliberations on cryptocurrency have been started recently. Based on the conclusion that comes in this, we will look into bringing a law or any other proposal.

Talking to the media regarding cryptocurrencies, the Finance Minister said that the income generated from cryptocurrencies, we have imposed a tax of 30 percent on it because it is an asset. As for digital currency, it will be issued by RBI. Sitharaman said, we are also tracking every transaction of money in (crypto currency) by levying 1% TDS on every transaction. For now there has been no discussion on what crypto and crypto assets are.

The Finance Minister said in the budget speech that the Reserve Bank of India (RBI) will introduce Blockchain technology based Digital Rupee in the year 2022-23. He clarified the taxation on cryptocurrencies and other private digital assets. He proposed to levy 30 per cent tax on the profit on transactions in such properties. Sitharaman clarified, “This taxation is imposed on activities related to cryptocurrency. This does not mean that it is being legalized. Not everyone can issue currency.

Responding to the question related to employment generation in the budget, he said, “We are increasing the capacity of the people by making them skilled. The guarantee cover under ECLGS (Emergency Credit Facility Guarantee Scheme) will be increased by Rs 50,000 crore to Rs 5 lakh crore. Also, its deadline has been extended till March 2023. Additional assistance is specifically for hospitality and related enterprises. This will increase employment opportunities.” He said that 68 percent of defense procurement expenditure in the budget has been earmarked for procurement from local industries. In addition, emphasis is being laid on food processing. All these will create good employment opportunities.

Responding to a question related to the relief of the common man in the budget, Sitharaman said, “Merely reducing the tax rate is not beneficial. We made provision for cheap loans for affordable houses. Measures taken for farmers, provision for startups, extension of ECLGS deadline will also benefit common people. There is no shortage of cash and the private sector has enough money for loans as per their requirement.

Sitharaman also said that whatever is there in the budget, it is on the real ground. Whatever estimates have been given are real. On the question of higher raw material price, he said that all manufacturing industries have not been affected by the increase in raw material price, it is only affecting the metal industry to some extent.


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