NEW DELHI: Finance Minister Nirmala Sitharaman has announced the launch of the 'Digital Rupee' under the auspices of the Reserve Bank of India in 2022-23 to boost the Indian economy. Nirmala Sitharaman has said that a 30 percent tax will be levied on transactions on virtual digital assets. Meeting demands from large sections of industry, she said the RBI will launch a 'Digital Rupee' based on blockchain technology in 2022-23.
-The Reserve Bank of India (RBI) will introduce digital currency in the next financial year beginning April 2022 to boost the digital economy and efficient currency management, Finance Minister Nirmala Sitharaman proposed in her Budget 2022-23 speech on Tuesday.
-The introduction of a central bank's digital currency will give a big boost to the digital economy. Digital currency will also help in the currency management system, the minister said.
-It is therefore proposed to introduce digital rupee using blockchain and other technologies to be issued by the Reserve Bank of India, starting 2022-23," Sitharaman said.
Also 30 pc tax on income from cryptocurrency, virtual assets; 1 pc TDS on buy/sale
-Giving clarity on the taxation of cryptocurrencies and other virtual assets, Finance Minister Nirmala Sitharaman proposed a 30 percent tax on income from transactions in such assets.
-Also, to bring such assets under the tax net, she proposed a 1 percent TDS (tax deducted at source) on transactions in such asset classes above a certain threshold.
-Gifts in crypto and digital assets will also be taxed, she said.
-The tax proposals will come into effect from April 1 after the passage of the Union Budget in Parliament.