Our take on the Budget announcement

The Budget presented earlier this week was positive, especially from the standpoint of the crypto industry in India.

From rumours of ban and jail time in earlier years, to the Finance Minister Nirmala Sitharaman bringing in taxation around crypto, and talking about India’s future plans in the sector shows how far we have progressed. The announcement as a whole signals positive intent, and hints towards possible plans to legitimize Bitcoin and other crypto assets in the future.

There were 3 major announcements pertaining to the sector:

  1. 30% tax on income generated from transfer of virtual assets – effective from April 1, 2022
  2. There will be no carry forward of losses into subsequent assessment years.
  3. 1% TDS on transactions – effective from July 1, 2022

There was also an announcement of India launching its own central bank digital currency in 2023. However, very little information was revealed on this and more clarity is required.  

As debates rage on, the question on everyone’s minds is whether this is good news or a bad one.

At GoSats, we see these announcements from the Finance Minister as a positive sign. Overall, this does bring some kind of regulation and recognition to the space – even if it’s only around taxation. A very clear point to note is that the government is yet to legalize crypto. To get more clarity on this, we look forward to the much-awaited Crypto bill.

Simultaneously, we understand that there is disappointment regarding the announcement. However, as with any law or regulation, there is a natural evolution that will eventually happen, here with Indian crypto regulations too.The fact that the Finance Minister acknowledged the industry and how it could boost India’s economy gives us confidence that the path forward will be bright for Indian investors and innovation in the crypto industry.

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