Can you shop with cryptocurrency? What are the new tax rules in India? Aditya Singh demystifies crypto for Brut.
: Crypto India
: Crypto India
Category
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TechTranscript
00:00What are Cryptocurrencies?
00:02Intro
00:16What can happen is that money is not controlled by central banks
00:19but is controlled by the public
00:21which has gold properties and can be used for transactions
00:24So, cryptocurrency was born out of this
00:26Cryptocurrencies are completely digital
00:29Just like your current financial system
00:31where you do transactions online
00:33If you look at Bitcoin in cryptocurrency
00:35which we use as an example
00:37It has features like gold
00:39If you mine gold
00:41then you have to work hard to mine it
00:43You have to look at the location, do the expenditure
00:45You have to be a machine to mine gold
00:47Similarly, if you look at Bitcoin
00:49it is limited like gold
00:51which has a supply of 21 million
00:53If you want to mine this
00:55then you have to work hard for it
00:57You have to set up a computer and mining setup
00:59Electricity cost, maintenance cost, etc.
01:01Intro
01:05If Bitcoin is a cryptocurrency
01:07a public cryptocurrency
01:09then who will maintain its ledger?
01:11How can we trust it?
01:13For Bitcoin or any cryptocurrency ledger
01:15technology is used
01:17which is blockchain technology or distributed ledger technology
01:19There are many miners here
01:21who support this network
01:23They provide computing power
01:25which runs the entire network
01:27All these ledgers
01:29are stored in the same computers
01:31everywhere
01:33Whenever there is a transaction
01:35or a block mine
01:37the transactions are noted down on every computer
01:39There is no question that
01:41if there is a note down on every computer
01:43then someone can cheat
01:45In 10 minutes, a new block is generated
01:47where there are transactions
01:49Whenever there is a new block mine
01:51it is checked in every computer
01:53whether the transactions are in line or not
01:55If it is identified that
01:57someone has made a mistake in the ledger
01:59and there is a different transaction
02:01then it will be flagged
02:03There are thousands of computers
02:05which match each other every 5-10 minutes
02:07Let's see if the ledger matches or not
02:09Intro
02:13Mostly if you are looking for
02:15investment in cryptocurrency
02:17then you will get a lot of options
02:19But if you are investing
02:21in a cryptocurrency
02:23which is being adopted worldwide
02:25and it has a use case
02:27which is solving real-world problems
02:29You can buy cryptocurrencies on crypto exchanges
02:31In India, there are a lot of crypto exchanges
02:33which you will get
02:35But please make sure
02:37that when you buy a cryptocurrency
02:39you buy it on a reputable exchange
02:41which is legitimate
02:43and you know that it is in the cryptocurrency market
02:45Mostly, the Indian crypto exchanges
02:47support the INR pair
02:49So, you can directly buy
02:51these cryptocurrencies
02:53with Indian Rupees
02:55Intro
02:57What is the new tax
02:59introduced on cryptocurrencies?
03:01Earlier, if you used to trade in cryptocurrencies
03:03then according to short-term and long-term
03:05capital gains
03:07you had to file the return
03:09according to the tax slab
03:11But now, according to the new tax policies
03:13if you trade in cryptocurrency
03:15it doesn't matter
03:17how much amount you are trading
03:19whether you are below 1 lakh in the tax slab
03:21or above 10 lakh
03:23You have to pay
03:25a flat 30% tax
03:27on the cryptocurrency profit
03:29whenever you trade
03:31But if you are earning
03:33a profit in the cryptocurrency
03:35then you can't do any deduction
03:37For example, if you buy
03:39Bitcoin for INR 10,000
03:41and it becomes INR 20,000
03:43then when you file the tax
03:45you have to pay a 30% tax
03:47on the profit of INR 10,000
03:49Intro
03:53So, if two people want to
03:55do a transaction and both agree
03:57then they can definitely do the transaction
03:59But if your question is
04:01can you use cryptocurrency
04:03as you use Indian Rupees
04:05then the answer is NO
04:07If you want to buy anything
04:09or do any transaction
04:11then you have to accept
04:13By law, because it is a legal tender
04:15they have to accept
04:17But if you go to a place
04:19where you ask them to accept cryptocurrency
04:21then it is their choice