Budget 2022: What it means for the Indian crypto community

Brief Synopsis of Crypto Mentions in Budget

  • The profits from the trading of virtual digital assets (VDAs) such as cryptocurrencies, crypto tokens, and non-fungible tokens (NFTs) would attract a tax of flat 30% in addition to surcharge and cess.
  • A tax deducted at source (TDS) at the rate of 1% has been introduced where the transaction value is above a certain threshold. Through this, the government aims to keep the track of the digital movement of the crypto assets along with widening the tax base.
  • Any gifts in the form of VDAs will be taxed, with the receiver bearing the liability for the appropriate tax declarations.
  • India will introduce their first Central Bank Digital Currency (CBDC), the Digital Rupee. As the name suggests, Digital Rupee will be a digital form of Rupee and will be monitored and regulated by the Reserve Bank of India. Here, RBI will be the guarantor of the Digital Rupee, just like for fiat coins and currency.

Recognition to the Crypto Sector

First Step Towards a Legal Framework for Cryptos in India

The shift of Investors, Corporate & Banks

Understanding the 30% Bracket

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