Union Budget 2022-23 updates on ‘virtual digital asset

Union Budget 2022-23 updates on ‘virtual digital asset

It includes a non-fungible token or any other token of similar nature. It also includes any code, number, or token generated through cryptographic means or otherwise that provides a digital representation of the value exchanged. It may also include digital assets that government may notify at a later stage.

The Finance Minister made the following announcements-

  • A flat 30% tax shall be charged on the income generated through the transfer of Virtual digital assets.
  • The tax shall be levied on the person receiving digital assets as gifts from anyone.
  • No provision for any deduction (on any expenditure) or any allowance on computing any such income. This would exclude the cost incurred on the acquisition of the asset.
  • The loss incurred from the transfer of these assets shall not be set off against any other income.
  • The payment made concerning the transfer of these assets shall attract TDS at the rate of 1%. 

The experts on cryptocurrency coin exchanges are of the motion that this is a positive step towards legitimizing the crypto in the country and they sense an optimistic sentiment towards acceptance of the crypto and NFTs (non-fungible tokens) among the stakeholders in the country.

The government hopes to familiarize investors and non-investors with the digital rupee, likely to be launched by the RBI which ‘shall build an appetite ’ for the asset class.

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