India will introduce a high tax on cryptocurrency transactions and issue a digital rupee

India's 2022-23 budget provides for the introduction of a special tax regime for income from the transfer of digital assets and large transactions with them.

Today the country's finance minister NirmalaSitharaman presented a document according to which income from cryptocurrency will be taxed at a flat rate of 30%. Moreover, the government will impose an additional fee for the transfer of digital assets (sale, exchange or abandonment) above the established threshold, in the amount of 1% of the transaction value. Giving cryptocurrency alsowill be subject to tax paid by the recipient.

At the same time, India will not provide anydeductions from cryptocurrency income, except for the cost of their acquisition. Losses from operations with digital currencies cannot be attributed to any other expense items. The cost of buying crypto assets can be taken into account in the costs no earlier than the next financial year.

The Indian crypto community reacted positivelygovernment action, as tax clarity means that the authorities do not plan to impose a ban on the use of digital currencies, which has been discussed for a long time.

During his speech, Nirmala Sitharamanalso announced that the Reserve Bank of India will issue a digital rupee before the end of 2023. According to her, this step will accelerate economic growth and increase the efficiency of the national financial system.

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