INDIA'S OWN CRYPTOCURRENCY LAUNCH AND 30% TAX ON CRYPTOCURRENCIES AND DIGITAL ASSETS
India's finance minister "Mis. Nirmala Seetha Raman," said on the budget 2022 presentation on Lokh sabha, which is in next year India will launch our own digital currency on the blockchain technology with the help of "RBI".
It helps the currency management system very well. currently, only some countries only have their own central bank digital currency (CBDC). By next year India is going to be one of the countries.
Also, she explained the cryptocurrency and digital assets regulation in India. in this, you will get more about that
What is digital currencies and cryptocurrencies
we can consider all cryptocurrencies as "Digital currencies". But all digital currencies are not cryptocurrencies. cryptocurrencies are managed by computer algorithm digital currencies managed by authorities.
Even though crypto is set to legal now also now it is under tax paying. by the new announcement. Income from cryptocurrencies and digital assets will deduct 30% over profit with include 1% tax on TDS (Tax deducted at source)
- 30% Tax over income from crypto profit+1% TDS
- also gift through crypto
- The tax will be valid from April 1 after the passage of the union budget in parliament
The need for regulation we can simply say privacy. cryptocurrencies are working on blockchain technology. It is pseudonymous, It has the potential for illegal activities. It is good if have a regulation on a country like India. That's why India plans for it
But 31% tax is too much. we need to pay a tax of our 30% income per year. If a person makes more than 2.5Lakh INR/annum through cryptocurrencies or digital assets. This 30% Tax is over the profit.
let's consider Alex is trading with 1000$
and he made 5x profit. Then Alex have 1000$+5000$
5000$=373997.00 INR
then Alex need to pay 31% of his profit which is equal to 115939.07 INR,
usd=1,550$
I know tax is not a bad thing. By paying tax we also become a part of our national growth,😍. But I expect the tax may reduce when it becomes valid. Anyway, let's hope for the best. And it really affects the crypto market well. It makes aware crypto of more people. More investors and traders will come in to market after it.
I hope you get some knowledge from this post. I provided the source of the images I used in this blog. if you want to contact me feel free to connect me through my instagram @akshay_ambrose. thanks, going through my blog😍.