A member of the ruling party of India passed a negative comment on crypto but supports the Central Bank Digital Currency (CBDCs).
India is a tech-friendly country, where India has proper room for the blockchain industry but is confused for crypto adoption. In the present time crypto bill is under development but the crypto tax rule has been legally introduced, under which crypto investors would have to pay 30% tax on income generated from crypto investments + 1% TDS.
Nishikant Dubey is a member of parliament who represents the majority supported ruling political party Bharatiya Janata Party (BJP). Dubey said that cryptocurrencies are popular tool for people, who are involved in money laundering or drug trafficking.
Parliament members also noted that the Indian government and Central Bank (RBI) is aware of the amount of money invested by Indian citizens in crypto to this date. In this way, the BJP leader noted that crypto is trouble for the entire world.
However, Dubey passed his negative comment against cryptocurrencies like Bitcoin, Ethereum like assets but he appreciated the move of the Indian government toward the adoption of Central Bank Digital Currency (CBDCs).
Dubey also appreciated the crypto tax rule of India as a good move, which is actually highly controversial for Crypto investors because of an additional rule of a 1% TDS system.
Controversy on Crypto Tax bill
At present majority of the crypto companies’ leaders and crypto proponents of India are against the crypto tax bill.
In reality, 30% of tax provisions have been introduced successfully and more likely not going to be changed.
But here 1% TDS, which imposed 1% direct reduction in the fiat transaction amount, is a very controversial thing.
For example, if a person will trade with his $100 and if he will trade 100 times with that amount then at the last he will find his initial balance into zero, till the next financial year.
Right now 1% TDS provisions have been scheduled to get introduced in July of this year but before that will go through discussion.