It is known, now India is starting to move closer, to recognize crypto as a legal tender. Nirmala Sitharaman, Minister of Finance, has said that any income from the transfer of any virtual assets is subject to a 30% tax.
"There is no deduction on any expenses or allowances, when calculating the income. Except for switching costs when buying. For gifts in the form of virtual digital assets, it is also proposed to be taxed in the hands of the recipient," said Sitharaman.
The submission proposal came hand in hand with the surge in purchases of cryptocurrencies and Non-Fungible Tokens (NFT) in India. Although in fact, there are no clear regulations regarding this matter, as quoted by us from TechCrunch, Wednesday (2/2/2022).
The confirmation of crypto as a legal tender was also conveyed by Changpeng Zhao, CEO of Binance. Where his tweets on Twitter have invited 2.1 thousand reactions from netizens and gained 4.2 thousand retweets and 18.6 likes.
"Crypto is legally recognized in India with a 30% tax," wrote CZ Binance.
It is even known that last month, WazirX had an annual trading volume of more than USD 43 billion in 2021. Where its growth shot up to 1.735% from 2020.
A little information, actually making crypto as a means of payment has been done first by El Salvador. Precisely on September 7, 2021, by legalizing Bitcoin as a digital currency for transactions.
Even the government of this country bought the first 400 Bitcoins and President Nayib Bukulele promised to buy more. Unfortunately, the day after it was established, this digital currency actually fell more than 10%.
In addition, the country's economy was hampered. Because it forces shops and residents to accept Bitcoins that they are not familiar with. As a result, the International Monetary Fund (IMF), urged El Salvador to abolish it as a legal tender.