7 Things to Know — Cryptocurrency and NFTs Edging into the Union Budget 2022
Budget 2022, efforts to regulate the largest and a highly volatile Crypto and NFT Market in India
Pandemic opened a new source of income through cryptos. People recovered their losses and savings by investing in this disruptive technology. India witnessed a whopping income of 638 billion dollars in crypto arena which couldn’t be taxed at all then.
Keeping in view to avoid fraudulent and corrupt money transactions that arise due to the anonymity of the investor which may compromise National security, this budget is a pilot to keep track of money circulation as well encourage crypto market in India to compete at global level. There is a lot to look forward to in the budget 2022 — regulating the crypto market, which is highest in the world having 10.07 crore investors in the previously unregulated market.
Focused on four pillars — Developing inclusive economies, enhancing productivity, shifting to renewable energy, and combating climate change — this is the budget’s blueprint for the nation’s economy in the years ahead. The budget drew more attention with the introduction of the Digital Rupee scheme for virtual digital assets, and most significantly, Defi, Cryptocurrency and NFTs. Scroll down to unveil more about the budget 2022 and what it got for digital money?
1. Digital Rupee to be launched in the financial year 2022–23 by RBI based on the blockchain technology.
2. Digital Rupee launch will be based on The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.
3. Income from transfer of any digital assets including cryptocurrencies and NFTs will be taxed at 30%.
4. Only cost of acquisition shall be deducted from the sale value. No other expenses will be allowed to be deducted.
5. Losses arising from digital assets shall not be available for set off from the incomes.
6. Tax shall be collected at source at the rate of 1% during the sale of digital assets.
7. Digital assets / Cryptocurrencies gifted will be taxed in the hands of the recipient and not the transferor.
All in all, it’s a budget meticulously crafted to stabilize the growth of Indian Cryptocurrency and NFT market. The budget 2022 is simply a boost to the community of digital assets and currency and safeguarding nation’s interest to combat money laundering and terror financing. Now it’s about how the organizations brace this change for a whole new game.
bitsCrunch is already a pioneer in this league. As a blockchain analytics company, we look forward to helping you in making prudent decisions to maximize your returns from cryptocurrencies and NFTs mitigating the risk and threat it poses in a highly volatile market.
Anything which is up and evolving can be both boon and bane to the beneficiaries. Here, with cryptocurrencies and NFTs, the rate of scams and fraudulent transactions are spiking up everyday at global NFT marketplaces. Our comprehensive solutions aim at guarding the NFT ecosystem making the virtual space conducive for crypto traders and enthusiasts.