India shows no sign of banning crypto, introduces Taxation: indicates Finance Minister

• Indian Budget 2022 is here; finally, virtual digital currencies and CBDCs got some space into the picture.
• High taxes would be charged on transfers and remittances through the digital assets.
• 2022 was expected to bring regulations and taxations for the asset class, and it proved to be true in the case of India.

The Indian Budget 2022 is in the limelight right now, especially for crypto enthusiasts. As the year expects changes, adoptions and regulations for the digital currencies. The country’s finance minister also mentioned the same in her announcement regarding the Budget.

Taxations and CBDCs mentioned in the Speech:

In her Budget Speech 2022, Nirmala Sitharaman, Finance Minister, mentioned that 30% of tax would be charged on income via the virtual digital assets transfer. There was a further mention that no set-off will be served in any case of losses. And a deduction of around one to five per cent of TDS will be there.

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30% tax would also be charged on remittances and gifts in the virtual digital currencies from the party receiving it. And that Central Bank Digital Currencies(CBDCs) by the Reserve Bank of India based on Blockchain technology can be expected by the year 2023. 

Last year China completely banned the asset class and its mining. And 2022 was expected to bring regulations and taxations on cryptocurrencies. The US Fed is also continuously researching and discussing the same lately. 

Although the high taxes might bring a bit of disappointment and disapproval from crypto enthusiasts and investors, but the introduction of a digital rupee might only facilitate the government and the citizens. And it’s really interesting to see that the Indian government is at least considerate of virtual digital currencies amidst all the hype about their volatility.