Digital Rupee to be issued by RBI in 2022-23: FM Sitharaman

Enabled by blockchain technology, Digital Rupee will be issued by the Reserve Bank of India in 2022-23, Finance Minister Nirmala Sitharaman announced in her Union Budget speech on Tuesday.

Digital currency will boost digital economy, Sitharaman said.

In her Union Budget 2022-23 speech, she also said Rs 1 lakh crore financial assistance to states will be provided in 2022-23 to catalyse investments.

The finance minister further said that in 2022-23, states will be allowed fiscal deficit of up to 4 per cent of GSDP.

Additionally, giving clarity on taxation of cryptocurrencies and other virtual assets, Finance Minister Nirmala Sitharaman on Tuesday proposed a 30 per cent tax on income from transactions in such assets.

Also, to bring such assets under the tax net, she proposed a 1 per cent TDS (tax deducted at source) on transactions in such asset classes above a certain threshold.

Gifts in crypto and digital assets will also be taxed, she said.

(With PTI inputs)

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