Indian government imposes 30% crypto tax and introducing digital rupee CBDC by 2022-23

in a speech discussing the budget for 2022, Indian finance minister Nirmala Sitharaman stated the launch of a central bank digital currency (CBDC) by 2022-2023 aims to boost the country's economic growth. 

Sitharaman highlighted the requirement for digital inclusion across different business verticals while declaring the fund allocation set in the Union Budget. 

Read: India to introduce new Crypto Bill in Parliament after Cabinet approval

She added, that the introduction of a CBDC will provide a "big boost" to the digital economy. also highlighted the possibility of a more efficient and cheaper currency management system made by digital currencies. 

“It is therefore proposed to introduce digital rupee using blockchain and other technologies to be issued by the Reserve Bank of India, starting 2022-23.”

The launch of a digital version of the Indian rupee. Sitaraman also announced a 30% crypto tax that targets all transfers of virtual digital assets, She suggested:

"Any income from transfer of any virtual digital asset shall be taxed at the rate of 30%. No deductions in respect of any expenditure or allowance shall be allowed while computing such income, except the cost of acquisition.”

Any income from transfer of Virtual Digital Asset shall be taxed at 30% : FM @nsitharaman#Budget2022 - 2023#AatmaNirbharBharatKaBudget pic.twitter.com/J88YTIGPz5

— All India Radio News (@airnewsalerts) February 1, 2022

Nirmala Sitharaman also said that any losses that happened while transacting digital assets cannot be used as compensation against any other income source. investors will not be able to show losses or hacks of cryptocurrencies to offset tax on profits. 

Sitharaman further suggested implementing a tax deduction at source (TDS) of 1% above a yet-to-be-determined threshold. in order to keep track of crypto investments in the country. 

Lok sabha highlighted that a parliamentary research group has managed a crypto-focused training for tomorrow, Feb 2

The business calendar for the lower house of parliament no longer includes a bill that could potentially ban crypto in the country. 

Theretofore, published texts of the bill suggest banning "private cryptocurrencies" in India while retaining the use of "the underlying technology of cryptocurrency."

Read: Indian parliament's latest agenda includes a training session for cryptocurrency