 Skill development

 Presented by: Shanti mahendra yadav

 Subject teacher: Manisha Vaidya

 Topic : Article review

Financial Budget purposes 30% Tax on Crypto Currency
  Article Review

 Article headline: Cryptic on crypto? FM proposes 30%

Tax on gains, Says calls on legal status
pending.

 Topic for review: Financial budget introduced new tax

rate 30% on Crypto currency.

 Budget announced on : 1st feb 2022.

 Published Newspaper: Times of india.

 Published Date: 2nd feb 2022.

What is an Crypto ?
Cryptocurrency, sometimes called crypto-currency or
crypto, is any form of currency that exists digitally or
virtually and uses cryptography to secure transactions.

Cryptocurrencies don't have a central issuing or

regulating authority, instead using a
decentralized system to record transactions and
issue new units.
 Detailed Review on the Article

 On the detailed discussion on the budget for the india for 2022-23
the committee has decided to put a 30% tax any kind of gain or
capital profit obtained from the cryptocurrency related trades and
market.

 If there are frequent trades and high volumes, gains from the
cryptocurrency transactions will be taxed as 'business income'.
However, they will be taxed as 'capital gains' if the purpose of owning
them is primarily to benefit from longer-term appreciation in value
with fewer trades.

 To curtain off the illegal activities which is been carried by the various
trader under the gain by cryptocurrency the government of the india
has decided to charge 30% of tax on it
Finance minister Nirmala Sitharaman given the detailed about the tax to be
levied under the cryptocurrency.

Nirmala Sitharaman
Introducing the india’s First
digital asset or currency

Misses niramala sitaraman has said that

central bank of india has an power to
issue the India digital currency. On the
conclusion india with help of RBI the
central regulation india will issue the first
digital currency.
 buying and selling is happening, and profits are being made, nothing
stops me from taxing it.

 Taxing them does not actually bring legitimacy." For the moment she has
proposed

 While computing income from the virtual digital currency, other than
acquisition cost, no deduction available

 TDS provision are applicable for consideration of Rs 50,000 or more in

case of individuals or HUFS who do not have any business income; or for
those whose annual sales do not exceed Rs 1 crore in the case of
business and Rs 50 lakh for professionals

 For others, the annual in come limit is proposed to be fixed at Rs

10,000Starting next fiscal, RBI will also issue Digital Rupee, using
blockchain, other
 conclusion
Finance Minister Nirmala Sitharaman says any income from transfer of any
virtual digital asset to be taxed at the rate of 30%. Crypto/virtual digital asset
gifts to be taxed in the hands of the recipient. No set off facility to available in
case of losses from investment in these virtual assets.

The cryptocurrencies are a hot topic in the global financial system. There is
great volatility of cryptocurrencies exchange rates. With this, there is a high risk
of trading these cryptocurrencies. Their growth has been able to gain the
attention of many speculators. They are easily portable.

So cryptocurrency should be levied tax because it will contribute to growth of

country.