On Tuesday Finance Minister Nirmala Sitharaman presented the Union budget. Under which she mentioned that all the cryptocurrencies and digital assets will come under a 30% tax slab.
The taxation has given the required validity to the digital currency in India. However, crypto investors are not happy with such a high taxation rate on this new form of digital currency.
In her budget, Sitharaman mentioned, “Any income from virtual digital assets is taxable at 30 per cent. There will be no deduction with exception of the cost of acquisition. The TDS is applicable beyond a specified monetary threshold, and the gift of virtual currencies is taxable in the hands of the recipient.”
Sitharaman also said that the country’s central bank, the Reserve Bank of India (RBI), will introduce a digital currency in the next financial year using blockchain and other supporting technology.
However, the crypto investors believe that this move will discourage the new investors and general public from investing in digital currencies. As the crypto market is fairly a new market for the public of India, taxing them so much at such an early stage will not be good for the crypto market.
The Co-founder of CoinDCX Sumit Gupta took on Twitter and asked for tax reduction on crypto citing this move will “discourage the traders.”
The common public started a petition to seek some relief on digital currency on Change.org.
Meanwhile, this move has at least cleared the air around the validity of the virtual currency in India. It ensures that government is in no mood to ban these virtual currencies in future.