Kolkata: The government’s decision to collect 30% tax on the increase arising from the transfer of Cryptocurrency and TDS one percent of the payment made to transfer has attracted a mixed response from retail investors and exchanges dealing with digital currencies.
While some investors have sighed relieved that virtual digital assets have received several recognition in the state union budget, others are left to wonder whether Crypto will be treated as asset classes or currencies in the coming days.
Minister of Finance Nirmala Sitharaman in his budget speech also announced that there would be no reduction offered in the tax framework for cryptocurrency.
He also announced that Bank of India’s backup will issue a digital rupee in the next financial year.
Some retail investors have begun to touch their position in Crypto last month when the government indicates that it will bring the bill to arrange a framework for regulating digital currencies.
This causes several sales by retail investors.
“It is still unclear from the budget speech what the future of virtual assets in India, but I feel relieved that it has discovered in speeches and taxes has been collected that has taken clarity about this asset class,” Sunil Bhajanka said, retail investors in Crypto.
Cryptocurrency is a digital or virtual currency that is guaranteed by cryptography.
Most crypto currencies are decentralized based on Blockchain technology – the ledger distributed.
One of the most important features of the cryptocurrency is that they are generally not issued by any central authority, making it theoretically immune to government or manipulation disorders.
Except El Salvadore, no other country recognizes Crypto as a legal tender.
“Ambiguity around the status of the Crypto currency remains because the government has not clarified whether it will be a currency or only asset class such as stocks and mutual funds.
Many will depend on how the government decides to treat virtual currencies,” said Ashwin Agarwal, Crypto Investor other.
Cryptocurrency is like Bitcoin and Ethereum witnessing a meteoric increase in assessment in the last 18 months or more.
An employee of an IT company said: “Crypto is very volatile.
Many people I know make big profits, but I can’t follow the market trends and spend my money a few months ago.
I will wait more time before entering the Crypto market after more Lots of clarity about status.
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This is the beginning, said Kripto young investor Kolkata
