|Now get interest on Cryptocurrency at the rate of 24% per annum and also take loan | Cryptocurrency|
The government has imposed 30 percent tax on cryptocurrency. How this tax will be collected is not yet clear. At the same time, some crypto exchanges are also announcing to pay huge interest on crypto holdings and provide loan facility
New Delhi: The Central Government has imposed 30 percent tax on the income earned on Virtual Digital Assets in the budget. This category will include both Cryptocurrency and NFT (Non-Fungible Token). Now some crypto exchanges are launching some such products, on which they are also promising to give loans to investors. Online banking platform Cashaa has announced interest rate of 24% per annum on deposits of Stable Coins.
This interest rate is much higher than the interest paid on deposits made by Indian banks. Not only this, some crypto platforms are also offering loans against crypto deposits. According to a report by ET, the cryptocurrency exchange, which is launching new products, believes that crypto-based products should not be taxed according to the current rules of India.
Tax will increase crypto holding
Darshan Bathija, co-founder and CEO of Singapore-based cryptocurrency exchange Vault, says he has approached the government seeking clarification on the tax on new products. Kumar Gaurav, founder and CEO of online banking platform Cashaa, told ET that the tax levied by the government will enhance the operation of digital assets as people would prefer to take loans on their crypto holdings instead of selling crypto to save tax. Gaurav also announced to pay interest at the rate of 24% per annum on the deposit of Stable Coins on his platform.
Cryptocurrency Tax Confusion
Whatever cryptocurrency exchanges may say right now, the truth is that no one knows how the new tax will apply to crypto investments. Therefore, it is too early to say whether crypto loans and interest earned from cryptocurrencies will be taxed or not. The next step of the government in this regard will have to be waited for now.