SRINAGAR: In the budget proposals for fiscal 2022-23, Finance Minister Nirmala Sitharaman announced India’s entry into digital currency. The Reserve Bank of India will issue a digital rupee powered by blockchain technology.
This, however, has not cleared the air on whether India will be making cryptocurrency a legal tender or not. Cryptocurrency also uses the same technology because it uses the distribution ledge with all transactions that cannot be changed.
On the digital front, the finance minister announced that all incomes from transferring digital assets will see a tax demand of 30 per cent, perhaps the highest in the world. This could impact the crypto boom in India. The cryptocurrency gifts will be deducted tax at the receivers end.
Income tax slabs remain unchanged. In a new reform, the tax returns can now be revised for omission and mistakes including declared income not reported. According to the proposals now changes are possible through a one-time window till two years from the end of the assessment year on payment of tax.
“Tax for cooperative societies has been reduced to 15% to provide a level playing field between cooperatives and corporates. Surcharge on cooperatives reduced to 7%,” Sitharaman announced.
The finance minister said that Centre and States govt employees’ tax deduction limit will be increased from the existing 10 to 14% to help the social security benefits of state government employees and bring them at par with the Central govt employees.
The Finance minister also announced some tax benefits to the parents and guardians who have specially abled persons to take care of.