Nirmala Sitharaman announced intentions for a 30% tax on revenue from digital assets in her annual budget statement.Profits from trading or transferring cryptocurrencies and non-fungible tokens would be taxed at the highest rate in the country.
As China tests the digital yuan, India is the latest large economy to launch an official virtual currency.
"The introduction of a central bank digital currency will give (the) digital economy a huge boost," Ms Sitharaman said on Tuesday. "Digital currency will also result in a more efficient and cost-effective currency management system," she added. The size and frequency of digital asset transactions, according to Ms Sitharaman, "has made it vital to provide for a specific tax framework," where gains from transactions are taxed.
The tax would also apply to digital asset gifts, with receivers paying for the fee. All additional taxes would be deducted at the point of sale.
Finance Minster NIrmala Sitharaman made the statement while presenting the Indian federal government's annual budget.
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