Finally the day arrived when India witnessed the explicit tax regime for the crypto currency transactions. The Finance Minister of India today presented the Union Budget in which she made the announcement two important announcements and if we go by the twitter trend then only two important announcements and both pertaining to the crypto currency.
This shows how the crypto currency is becoming important in the life of the Indian citizens. Many of them indulge into the trading of bitcoin and alt coins whereas a few also engage on the actual blockchain projects like Hive.
The Finance Minister made the announcement of launching the government backed crypto currency to be launched by the next year and it would be developed on blockchain and will help to reduce the costs of transactions. Making it clear that Digital Rupee would be the crypto currencies she termed other crypto currencies as the digital assets and made it clear that the trading in these assets would be taxable at the rate of 30% flat. There would not be any costs benefits to be taken as set off.
Source: Bing
Though 30% may look like a heavy charge, Indian citizens are probably happy with the same as they are used to pay such high rates of taxes anyways. Making it explicitly taxable makes it easy for the Indian investors to take their positions in the bitcoin and other currencies easily.
This is actually a positive development for the crypto markets across the world which were eagerly waiting for the good trigger to come in after the Russian ban on crypto currencies. The sheer size of the population of Indian would help the crypto markets to flourish once again.
The uncertainty in the taxation was the major cause of concern for the Indian investors to avert from making aggressive investments in the crypto markets. This will now push the global rally of the crypto currencies once again.