India to now tax crypto earnings, launch digital currency

India to now tax crypto earnings, launch digital currency

India is going to introduce a digital rupee and a 30 percent tax on income from cryptocurrencies and other digital asset transfers.

The introduction of a central bank digital currency is scheduled for the fiscal year 2022-23. It aims to “give a big boost to the digital economy”. Digital currency is also said to lead to a more efficient and cheaper currency management system.

Besides the 30 percent tax, a 1 percent tax deduction at source on payments related to the purchase of virtual assets has also been proposed to capture details of all crypto transactions.