Indian Finance Minister Nirmala Sitharaman announced recently that the agency is ready to present the 2022 budget to the public. In addition, the woman noted, supporters of digital assets will finally be able to get acquainted with the newly minted bill on cryptocurrencies.
So, it took a lot of time for the government of the country to come to a unified decision regarding “digital assets”, this is how, by the way, the authorities qualified the “new money”. It is worth noting that earlier officials discriminated against cryptocurrency for a long time, which, in turn, did not allow India to compete with other countries in the crypto industry.
After reviewing the legislative document, many holders of digital assets were unpleasantly surprised by the percentage tax rate that will be applied to all crypto-actors. So, it will be equal to the 30% mark, regardless of whether the trader's income has increased or decreased.
Citizens managed to pay attention to the fact that the tax rate for profits received in fiat currency remained the same - 15%.
It is worth emphasizing that the tax on digital gifts will be charged to the recipient. It turns out that if someone presents a crypto product as a gift to a user, he will have to pay a certain “commission”.
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Many analysts believe that the 30% rate may encourage some businesses to go offshore. In addition, there is ambiguity concerning the calculation of losses, that is, crypto-figures are not insured in any way from the loss of their investments or another market fall.
One can only hope that next year the tax rate will be reduced, and some amendments will be made to the description of the taxation processes for bankrupt companies.
“In the past, businesses were worried about the uncertainty in crypto, today Nirmala Sitharaman has taken a huge step towards the legalization of cryptocurrencies. India can still become a center of gravity for the crypto industry, which makes me very happy,” said Lakisha Kothari, Vice President of Liquidity Router’s Gateway Protocol.
Whatever the reaction of the community to the bill, it must be remembered that one way or another, regulation prevents fraud with digital assets, which makes users more secure.
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The Indian government also announced its intention to issue its digital currency in the next financial year, which, experts believe, will give impetus to the development of the crypto economy.
It should also be added here that, for example, the former Minister of Economy, Subhash Chandra Garg, was skeptical about the above statement, considering it more formal than real. Garg noted that the Reserve Bank of India does not have its digital asset model and has not even tested it.