In the last one year, the most talked about virtual currency has happened. This is also the biggest feature of Budget 2022-23.
Sachin Rohekar / Gaurav Muthe
In the last one year, the most talked about virtual currency has happened. This is also the biggest feature of Budget 2022-23. The growing trend of virtual currency in India had become a matter of concern for some people. be outside the control of any government or regulatory body Bitcoin And other such virtual currencies tend to fluctuate rapidly. Globally, there is no consensus among countries on investing in virtual currencies. Some countries have adopted virtual currency. Even a country like China has imposed a complete ban.
role of prime minister
In November last year, Prime Minister Narendra Modi had called a meeting of senior officials to discuss virtual currency transactions. He had publicly stated that the younger generation should be saved from going on a diet of this currency which claims high returns. Since then he has repeated this role at at least two international telecommunications conferences. The Virtual Currency Regulation Bill, ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ has been included in the agenda of the Lok Sabha as its preamble. However, it was not immediately clear whether the bill was intended to ban the use of regulated transactions. Furthermore, it shows that it will be the catalyst for the digital currency that the Reserve Bank was trying to introduce.
Sealed by the budget?
Presenting the budget for the financial year 2022-23 in the Lok Sabha on Tuesday, Union Finance Minister Nirmala Sitharaman gave official recognition to virtual currency by imposing a tax on virtual currency without any restriction. In her budget speech, Sitharaman announced that income from transfer of virtual digital assets would be taxed at 30 per cent. This means that the entire virtual currency has now come under the tax net and it is clear that how much tax will have to be paid on it. Secondly, a higher tax of 30 per cent per income is levied. Also warned that retail investors should stay away from it.
digital rupee
The central government has made an important announcement regarding the official digital currency proposed by the Reserve Bank. The Reserve Bank is announcing that it will introduce a digital rupee using blockchain or other technologies. Although the central government has given a nominal ban or indirect approval of a tax form on virtual currency transactions, it has maintained its role of encouraging the use of blockchain technology and related technology. He also hoped that the digital currency introduced by the Reserve Bank would create a more affordable and efficient currency management system.
What will be the new tax?
The central government has not mentioned the benefits of digital gold, central bank digital currency (CBDC) or any other traditional digital asset. The new tax has been announced with a view to impose a special tax on virtual currencies as a whole. Also, investors dealing in virtual currencies are now required to report profit or loss. Further, in the event of a loss, it is not possible to deduct the loss from any source. This means that the government has set a higher rate of 30 per cent to ensure that all investors pay a percentage of their profits to the government as taxes.
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