Tax on Digital Asset

Don’t ban it, tax it.

ll 🙏🏻 नमस्ते 🙏🏻 ll

Heading kuch अलग 🤔 है ना? but taxing is the solution that our Finance Minister Nirmala Sitaraman finds. Great step indeed to discourage the use of crypto, digital assets rather than banning them. India 🇮🇳 एक developing और emerging economy है l Current trends और technology 👨‍💻 को encourage karna हमारा काम है l So that government takes a magnificent step by allowing trading under digital assets. But यह digital asset hota क्या है? आइए जानते है: –

What are digital assets?

Government of India ने digital assets ki koi definition till date nahi बताई है l But in general, we can say that a Digital Asset is anything that exists in a digital format and comes with the right to use. आसान भाषा में देखें तो NFTs, Cryptos.

समझो हम कोई land 🌄 purchase करते हैं in physical mode, which is treated as an asset. This means we can sell it any time, build our home 🏡 on it, can mortgage it. Take one more example of Gold, we can use it, wear it, sell it, or keep it, that is treated as an asset. Same if we buy Cryptos or NFTs that will be treated as digital assets. Which we can sell it, mortgage it, basically we can use every right of assets. बस Digital Assets यह digital form मे होगी, जिसका existence सिर्फ digitally होगा l

What are the steps taken toward Digital Assets?

Digital Assets will be taxed at 30 percent जो हमारे income tax ke highest slab के बराबर है l इसका मतलब यह है, jo bhi aapko transaction me gain hoga उसमेंसे 30% as tax aapko Government of India ko देना होगा l

No Deduction is to be allowed except the cost of acquisition. Let’s take an example, suppose आपने ₹1000 ke crypto purchase kiye the 2021 aur abhi 2022 me uski value ₹1500 हो गई l ₹500 aapko profit हुआ l So from that profit you are not allowed to deduct anything for tax payment. आपको ₹500 मे से 30% deduct karke aapko government ko देना होगा l Aap aapke expenditures उसमे add नही कर सकते like electricity used for that transaction, internet charges, etc.

Loss from sales of digital assets can be set off only against the gains from sales of virtual digital assets. It simply means अगर आपको digital assets me koi bhi loss hua to वह loss aapko digital assets ke transaction पे हुए gain se settle करना होगा l

Gift 🎁 to be taxed in the hand of the recipient. जो person gift ko accept करेगा वह tax ko pay करेगा l Normally agar hamne koi physical asset kisi ko gift kiyi तो gift receiver को यह tax pay karna होता है l

TDS rate for transfer of virtual digital assets at the rate of 1%. Jisme crypto exchanges और digital assets ke exchange ko proper accounts 📑 रखना होगा और उसमे TDS ki provision करनी होगी l

The budget also made way for the ‘digital rupee’ — a central bank digital currency (CBDC) जो Reserve Bank of India (RBI) 🏦 run करेगी l In the post-budget press conference, Nirmala clarified that the CBDC will be treated as a currency while all other cryptocurrencies will be treated, which are not controlled by the RBI, will be taxed at 30%.

Overall, however, Industry is move को welcome कर रही है l “It gives much-needed clarity and confidence to the industry.” Said CoinDCX CEO and Co-founder Sumit Gupta.

Hope you like this article. We will bring more articles related to finance and economics this month.

तब तक happy reading.

ll 🙏🏻 धन्यवाद 🙏🏻 ll

– j₹k