India to impose digital currency tax

FILE PHOTO: Representations of the Ethereum virtual currency standing on the PC motherboard are seen in this illustration picture, February 3, 2018. Photo Courtesy: Reuters

Kathmandu: Releasing a new budget India has announced to impose digital currency tax.

India, which had earlier considered crypto and other transactions illegal, has announced a 30 per cent tax on income from such transactions in the fiscal year 2022/23.

The budget presented by Indian Finance Minister Nirmala Sitharaman on Tuesday announced a 30 per cent tax on digital asset transfer income and the creation of a new digital currency managed by the Reserve Bank of India (RBI).

As mentioned in the budget, the Reserve Bank of India (RBI) will create a new digital currency to be managed.

According to Indian media, the RBI has been working since last year to trade such currency as Central Bank Digital Currency.