The Rakhi celebration has begun. The sacred thread festival of the love between siblings is being observed this time over two days, today (August 30) and tomorrow (August 31). When thinking of the event, gifts spring to mind first. Traditional gifting alternatives like cash and gold have begun to be replaced by more modern financial gifts like stocks, mutual funds, and even cryptocurrencies.
What are cryptocurrencies?
Digital currencies, called cryptocurrencies, are used to pay for products and services. For their activities, these virtual assets don’t need any middlemen like banks or other financial organizations.
Rakhi’s 2023 gift of cryptocurrency
Giving cryptocurrency as a gift has gotten simpler recently. At the moment, some of the most popular digital currency options for gifts include Bitcoin, Ether, Cardano, Tether, and Dogecoin.
The CEO and co-founder of Mudrex, Edul Patel, believes that giving bitcoins as gifts gives an old custom a contemporary spin. This creative approach to gift-giving serves as a heartfelt expression of your affection while also introducing the receiver to the world of digital assets.
Giving cryptocurrency fits with the idea of providing value through digital means and maximizing the chance for appreciation and stability, improving the experience of giving gifts overall, according to Edul Patel.
Tax benefits and other advantages of giving cryptocurrency
This situation gives a good opportunity to give gifts that encourage financial empowerment through the integration of digital assets because it allows for a tax exemption of up to $50,000 for various forms of gifting, including cryptocurrency, added Edul.
Cryptocurrency taxes in India?
Cryptocurrencies are categorized as virtual digital assets in India and are taxable. In India, bitcoin gains are taxed. In the Union Budget 2022, the government made clear its position on cryptocurrency.