The post UPI recorded 1 lakh Cr in transactions values last year first appeared on Corp India News.
]]>According to the National Payments Corporation of India (NPCI), UPI recorded transactions worth Rs 83.45 lakh Crore in 2021-22, Rs 504 crore transactions alone in March. It recorded a surge of 7.5 per cent from the previous month, with a transaction value of a record Rs8.88 lakh crore as of March 29.
Finance Minister, Nirmala Sitharaman, tweeted, “UPI crossed the 500-crore mark in volumes for the first time in March. As per NPCI’s data, 504 crore transactions were recorded by March 29 itself.”
As per the report, UPI’s significant rise in transactions is driven by pandemic induced lockdowns leveraging a widespread adoption of digital payments in the last two years. Hence, it has broken many records and now is moving closer to registering a monthly record value of Rs 9 lakh crore.
Minister of Commerce and Industry, Piyush Goyal, tweeted, “Thumbs Up for Digital Transactions: A watershed moment for the UPI as it zooms past the $1-trillion mark in digital transaction value in FY22.”
It is to be noted that UPI had recorded around 260 crore transactions valued at Rs 4.93 lakh crore in April 2021. Since then, the monthly transaction volumes have increased to 94 per cent and transaction values by 80 per cent marking a consistent growth.
Moreover, the state-owned payment mode has seen a remarkable increase in total retail payments in the country. It has been noted that 60 per cent of volumes of India’s retail payments came from UPI in 2021-22.
Around 50 per cent of UPI transactions are up to Rs 200, and 75 per cent of the total volume of retail transactions (including cash) in India are below Rs 100 in value.
As a result, the Reserve bank of India (RBI) had directed the NCPI to launch UPI for feature phones and offline transactions for small-value payments to further rise in the growth trajectory.
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]]>The post Crypto users will be charged 30% taxes on Digital Assets from April first appeared on Corp India News.
]]>As per the founder of WazirX, with almost ten million users, India’s Crypto market amounted to $100 billion in trading volume in 2021. Hence, the new tax regime will yield $100 million additional income tax year for the government.
30% tax on ‘Digital Assets’
Indian Government categorically listed cryptocurrencies as ‘Virtual Digital Assets’ and made a provision of 30 per cent tax on the profit earned from same. So if a crypto user sells a cryptocurrency, making a profit of Rs 100, he will have to pay Rs 30 as taxes.
Crypto-currencies in possession will not be taxed until sold at a profit. Hence, the rise in crypto prices will not affect until sold and will be counted as income from the relevant year. Additionally, crypto-based prizes and gifts will also be liable for 30 per cent tax.
1% TDS on every transaction
Moreover, the government has mandated one per cent tax deducted at source (TDS) on every crypto-transaction, whether at profit or loss, to be deducted by whichever crypto-exchange is used for the trade.
So if a user sells who sells crypto worth Rs 100 at Rs 90, he will be charged 90 paise as TDS. However, the amount deducted as TDS will be refunded on filing yearly tax returns.
Other provisions
Crypto traders who earn income solely on trading crypto-assets can show their earnings as business income, but they will not be able to claim deductions on business expenses.
Also, the government will not allow crypto-users from showing crypto profits as capital gains plus surcharge.
What about Crypto Mining?
The government is contemplating over bringing cryptocurrency mining under goods and services tax (GST) while it also wants to make crypto trade on foreign crypto exchanges subject to GST.
The post Crypto users will be charged 30% taxes on Digital Assets from April first appeared on Corp India News.
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