New Delhi: When Finance Minister Nirmala Sitharaman presented the budget on Tuesday, one point caught everyone’s attention. It is the new tax that the government has imposed on digital currency or cryptocurrency. Now 30 percent tax will be levied on digital currency income in India. It can be understood that if a person now invests 100 rupees in a digital currency and he gets a profit of 10 rupees on it, then out of these 10 rupees he has to pay 3 rupees as tax to the government.
Government will take TDS
Apart from this, one percent TDS has to be given to the government separately on every digital currency transaction. Suppose a person has invested in a digital currency. This investment is his asset. If this person now transfers this asset to someone else, then he has to pay TDS separately at the rate of 1% of the total value of that asset. TDS stands for Tax Deduction at Source. That is, the tax imposed on any source. Like the tax levied by the government on the salary you get every month, it is TDS. That is, the government generally considers digital currency as a source of revenue, and a 30 percent tax has also been imposed on its earnings.
Is cryptocurrency legit?
The question on many people’s minds is whether the government has legalized digital currency by taxing it? So the answer is both yes and no. In fact, the government considers only the digital currency as legal, which will be issued by the Reserve Bank of India. This means that the current cryptocurrency, such as Bitcoin, will not be considered a digital currency. Rather, it will be considered a digital asset. If all this seems complicated to you, think of it like the gold you buy or the house that is your house, they are your assets. That is, it is your property, not currency. Similarly Crypto Currency will be an asset of Government of India and people will be taxed from it. So if you think that a digital currency like Bitcoin has been considered legal, then it will not be technically correct at all. However, people will be able to invest in it.
That is the government’s intention behind the tax
Currently, in countries like America, UK, Italy, Netherlands and Australia, digital currency is similarly taxed by the governments there, which is why this currency is considered legal in these countries. However, there is an exception to this in some countries. A major reason behind this decision by the Government of India could be that the number of people who have invested in cryptocurrency in our country is around 8 percent of the country’s population. These people have staked their 70 thousand crore rupees in the form of such digital currency at this time. Indians are at the forefront of using cryptocurrency across the world. In simple words, this tax of 30 percent will directly guarantee the investment of 70 thousand crore rupees and it can increase the usage in India. Second, the government knows that after this decision, people will be encouraged to invest in digital currency. So he has prepared another option.
RBI to launch its own currency
According to this, by the year 2023, the Reserve Bank of India viz. RBI, launch its own digital currency separately, which will be more secure and stable than the rest of the currency. In short, just as RBI prints paper currency, digital currency with its stamp will also come so that people will be able to invest in it. In this budget, not many people were aware of one more thing, that is, if a person sends digital currency to another person as a gift, in such a situation, the person who receives this currency must pay 30 percent tax. It will happen.