No crypto regualtion discussion but 30% tax on profit: India budget session [Updated]

Reportedly crypto regulation bill of India will come to light in the next budget session but still, there is a position for blockchain technology adoption in the current budget session.

Today finance minister Nirmala Sitharaman is presenting bills in the Budget Session in the Indian parliament. The majority of the people expected that they will see a crypto bill discussion in the February 2022 Budget Session but unfortunately there are no crypto adoption related discussions.

At the time of writing this article, India’s budget session is live in the Parliament House. So nothing we can expect before the end of the session for today but available reports found that the Indian finance minister announced the budget for digital Rupee, Indian Central Bank Digital Currency (CBDCs). 

According to available reports at the time of writing this article, the Finance minister allotted around 37.7 Lakh crore Indian rupees for the Central Bank Digital Currency i.e Digital Rupees. This is a full indication that India is going to dive into the blockchain industry to bring advancement in the payment system. 

Besides this, some local news media channels reported that there is space for crypto-related tax systems. Under the current tax rules on crypto, India will charge a 30% tax on the profit of trades. However these are only parts of headlines and not many details available, so here we can’t say that every crypto trader will go through a 30% tax system. 

Besides the 30% crypto tax profit provisions, the country will impose 1% TDS on the buy and sell of crypto assets. It means that besides any kind of tax system, a user will always remain under the restriction to pay 1%+1% no matter whether he is in profit or loss. 

This news is creating a very big hurdle in the crypto community of India because the majority of them do not agree with the decision of the 1% TDS +30% tax system. 

Few experts noted that crypto-related tax or bills are not available in the public domain and still the budget session is live, so we should wait for the availability of such drafted bills. 

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