Cryptocurrency and Budget 2022 – Everything you need to know

economictimes.indiatimes.com:

The Digital Rupee, which is supposed to be India’s first Central Bank Digital Currency (CBDC) project, will be a digital form of the rupee – one that will be completely regulated and monitored by the central government. But if you are unsure what CBDCs mean, CoinSwitch Kuber brings the much-needed clarity on it. Such currencies usually have the full faith and backing of the issuing authority. Hence, the Reserve Bank of India will remain the guarantor of the Digital Rupee, just as it is for regular notes and coins.

Did you Know?

Sunny Leone took the lead among Indian actors to secure her digital assets when she broke the news about her association with NFT, two months back. This made her the first Indian actress to mint NFTs

The Finance Ministry, in these regulations, has proposed a 30% tax on the exchange of all virtual assets, including cryptocurrencies and non-fungible tokens. It has also highlighted that losses on these crypto-assets cannot be offset to a later date. This means that any loss encountered during the trading of these assets will not be set off with other income sources and that it will be carried on to subsequent years. Gifts in the form of virtual currencies are also liable to be taxed, with the recipient bearing the liability for any such deductions. Further elaborating on the taxation model for such virtual currencies, the Finance Minister outlined that all crypto transfers above a certain monetary threshold will be liable for a 1% TDS deduction, which will help the authorities keep track of the movement of such currencies in the economy. Many have seen these moves as a confirmation of the government’s acceptance of digital currencies. Others also say that this move