India will impose a 30% tax on income from the transfer of digital assets ahead of the launch of the digital rupee. The initiative was presented by Finance Minister Nirmala Sitharaman during the annual budget presentation.
Any income from transfer of Virtual Digital Asset shall be taxed at 30% : FM @nsitharaman#Budget2022 — 2023#AatmaNirbharBharatKaBudget pic.twitter.com/J88YTIGPz5
— All India Radio News (@airnewsalerts) February 1, 2022
“There has been a phenomenal growth in transactions involving virtual digital assets. Their scale and frequency demanded a special tax regime. […] Any income from the transfer of such an asset is taxed at 30%. No deductions are allowed, except for the cost of acquisition,” — the official commented.
According to Sitharaman, CBDC “on the basis of blockchain and other technologies” will enable a more efficient and cheaper system for managing the national currency, and will also give “a big push to the economy.” The launch of the digital rupee is expected in the new financial year, starting in April, the Finance Minister added.
Earlier ForkLog reported that the Reserve Bank of India may conduct pilot tests of CBDC in the first quarter of fiscal 2022.
Earlier in 2021, India reported a possible legislative ban on cryptocurrencies, with discussions of criminal liability for owners.
In the middle of the year there was information that authorities to legalize digital currencies as a class of assets.
However in November there was renewed talk of the government’s intention to ban most “private currencies”. This sparked panic in the local market, leading to a short-term local decline in Bitcoin’s price by 15%.
In December, media reported that authorities would indeed regulate digital assets rather than ban them.
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