4 major provisions proposed, effective at different points in time: 1. New Income Tax scheme 115BBH 2. New TDS clause 194S 3. Gifting of #crypto taxed as property 4. Sweeping definitions of crypto assets
New Scheme 115BBH (effective 1 April 2023)
Any income generated from transfer of any virtual asset will be taxed at 30%. There will be no deductions or offsets allowed. There will be no carry forward of losses into subsequent assessment years.
The #India#crypto#bill was expected to be tabled in final form in this budget session. It might be so if the cabinet clears it but the bill is expected to be finalized by May. The motivations behind today's announcement is not clarity per se but signaling:
The latest #OCC guidance allowing settlement through #stablecoins is exciting but with many side effects. There are threads that link it to the #Bitcoin price and ATHs, #Tether ,#Libra , #JPMorgan#WallStreet , #DCEP. I'm watching out for 6 aspects 👇1/n
1 - What most have caught on to is that stablecoins getting linked to banks will eventually make them more regulated and justify full AML/KYC disclosures. This will eventually be required everywhere, not just in the US. Another impact would be on reserve management..2/n
= #India, importer & friend to all oil producers, in the crosshairs.
Thread on these impacts of #OilPrice 👇
US #oilprice crashed negative for the 1st time in history. West Texas Intermediate (a US crude) traded as low as -$40.32 a barrel. So far the bulk of the losses are in US crude, -200 to -1000%! Global (Brent) crude has not gone down as much because global storage still exists.
1. Facebook struggled with regulation for 3 years in trying to launch #WhatsApp Pay bcoz of privacy issues+blocking by high access of PayTM etc. So FB made a deal with the big daddy of Indian companies with access.
2. The recently launched NUE framework by the #RBI is possibly a big end game being targeted by the partnership. This framework allows for parallel payment infrastructure to UPI being set up countrywide. $5.7 bn is cheap for this scale of access & profit