The government's strict attitude towards cryptocurrencies in India and the decision of a heavy tax of 30 percent on profits from crypto or other digital assets and one percent TDS on crypto transactions in Budget 2022 have started showing color. The effect of this is that it is becoming increasingly difficult for Indian investors to buy cryptocurrencies in rupees. Earlier Coinbase and now Coinswitch Kuber have also closed all options on their app to buy cryptocurrencies with Indian Rupees deposited through UPI and bank transfer.
Crypto Exchanges on NPCI's Radar
In fact, after coming under the radar of NPCI, which monitors UPI payments in the country, Coinbase, the first US-based crypto aggregator, banned UPI payments for cryptocurrency purchases just three months after its launch in India. Now after Coinbase, crypto aggregation CoinSwitch Kuber has also taken a big step. According to the latest report, it has temporarily stopped all deposit services in rupees from its app. That is, buying crypto through UPI has been stopped. Apart from this, bank transfers through UPI such as NEFT and RTGS have been banned on the company's mobile app.
Banks became alert after the statement
Let us tell you that two days before this, the step was taken by the banks after the statement issued by NPCI regarding the use of UPI in the buying and selling of cryptocurrencies. Following the statement of NPCI, banks had stopped all transactions through UPI on Coinbase. It may be noted here that Coinbase has assured its users of the convenience of buying cryptocurrencies through UPI after entering India.
crypto is not legal tender in India
It is worth noting that the National Payments Corporation of India (NPCI) had issued a statement recently saying that it is not aware of any crypto exchange in India transacting through UPI. After this, banks first stopped UPI transactions on Coinbase. Cryptocurrencies are not legal tender in India and the government has also warned that investors will be at risk after investing in cryptocurrencies without a regulator. Because till the time cryptocurrencies are officially recognized as legal in the country, NPCI cannot approve UPI payments involving cryptocurrencies. All payments made through UPI in the country come under the purview of NPCI.
Huge decrease in trending volume
According to the report, the trading volume for crypto exchanges in the year 2021 was 14 million users. Which has been decreasing continuously since the government announced a tax on crypto. Following the government's strictness, wallet MobiKwik, which facilitates the transaction of cryptocurrency through UPI, stopped its services on April 1. Since that time, that is, between April 1 and April 11, the trading volume has fallen by more than 50 percent. According to the report, after the tax and TDS on crypto came into force on April 1, there has been a 55 percent reduction in transaction volume and 40 percent in domain traffic.
That much of the income from crypto will be deducted
Since last April, the rule of a 30 percent tax has been implemented on the profit made from crypto. Understand it in such a way that suppose you invested 1 lakh rupees in cryptocurrency, after this investment you got a profit of 50 thousand rupees, then the government will deduct 30 percent tax on the profit of this 50 thousand rupees in the form of tax, that is, you got from crypto. Out of this earning, Rs 15000 will go to the government's account. Experts said that this move will eventually make investors think twice while deciding where to invest their money in this risky crypto market, now its impact is first visible on crypto exchanges.
Tax will be levied on the gift taker
Apart from this, according to the new rule, in the case of gifting such digital assets also, he has announced in his budget speech to impose a hefty 30 percent tax. It can be understood in this way that if you give a cryptocurrency gift of one lakh rupees to someone, then to whom you are giving this precious gift i.e. tax will be applicable at the rate of 30 percent on the recipient. If you gift a cryptocurrency worth Rs 1 lakh, then he will have to pay 30 percent of it or Rs 30,000 as tax to the government.
Calculation of 1% TDS
TDS i.e. Tax Deducted at Source is a part of Income Tax. Talking about the announcement of the government, you will have to pay TDS of 1 percent on the transaction of any kind of cryptocurrency. Understand in simple language, if you have done a transaction of cryptocurrency of one lakh rupees, then one percent of this transaction will be deducted as TDS from your account. By deducting TDS, the government will get a complete account of the cryptocurrency transactions done from your account. This means in a way, TDS is levied to keep an eye on the transactions of cryptocurrencies.
Dollar vs Rupee: Rupee will bow before the dollar, what will be the effect of this weakness on the country, who will be in profit?
The depreciation of the Indian rupee continues due to the strengthening of the dollar. In the early trade on Monday, the rupee fell by nearly 40 points to 81.55 in the rupee. On the other hand, the US
'You got the benefit of the schemes, now will you bless me?', PM Modi said to the beneficiaries of the Vikas Bharat Sankalp Yatra.
PM Modi Vikas Bharat Sankalp Yatra Prime Minister Narendra Modi today virtually interacted with the beneficiaries of 'The Vikas Bharat Sankalp Yatra'. The PM also launched a program to increase the
Techie Suicide: Atul Subhash's wife's family breaks silence in suicide case, makes serious allegations
In the case of the suicide of engineer Atul Subhash in Bangalore, now the clarification of his wife Nikita Singhania has come to the fore. Nikita had lodged a police complaint against Atul in the year
'These stupid jokers want to compete with India...', Owaisi took a dig at Pakistan over the wrong picture
All India Majlis-e-Ittehadul Muslimeen (AIMIM) chief Asaduddin Owaisi has slammed the Pakistani army over a wrong picture. Owaisi taunted that these stupid jokers want to compete with India.
IND vs ENG: 'Best Fielder' announced through a light show at Ekana Stadium, this Indian player won
In the World Cup 2023, the Indian team made the fans happy by registering its sixth consecutive win. After the match, the level of the Best Fielder of the Match ceremony also increased, and this time
Russia changed the commander to win the war: Putin handed over the command to the highest officer of the army, Sergei Surovikin was removed in 3 months.
Russia continues to suffer losses in the Ukraine war. Ukraine is rapidly getting Russia back its lost cities. Meanwhile, Putin has now changed his commander. Now the new commander of the Ukraine war
Arvind Kejriwal: SC will hear the plea of CM Arvind Kejriwal today, know what is the matter?
The Supreme Court will on Monday hear Chief Minister Arvind Kejriwal's plea challenging the Delhi High Court order upholding the summons issued to him in a criminal defamation case for retweeting an
Gujarat: Before the elections, Amit Shah gave a big gift to Gujarat, laid the foundation stone for a 750-bed hospital
Before the assembly elections in Gujarat, Union Home Minister Amit Shah has given a big gift to the citizens of Gandhinagar. Under this, he has laid the foundation stone of a 750 bedded modern
PM Modi: PM Modi called these four castes the biggest, and lashed out heavily on these issues including the 'arrogant' alliance; Read
Prime Minister Narendra Modi reached BJP headquarters after BJP's landslide victory in Madhya Pradesh, Rajasthan and Chhattisgarh. Here Union Home Minister Amit Shah, Defense Minister Rajnath Singh,
Congress President: Has Ashok Gehlot dropped out of the race for the post of Congress President, know for whom the pitch is being prepared
Who will be the next President of the Congress Party? Will Rajasthan Chief Minister Ashok Gehlot be given the command of Congress or will bets be played on some other senior leader? Will Rahul Gandhi
