Anndy Lian, book author of NFT: From Zero to Hero commented on India’s VDA rules.
India’s new tax rules for cryptocurrencies were introduced in the 2021 Union Budget and are known as the Voluntary Disclosure of Income Scheme (VDIS) rules. The rules require individuals who own cryptocurrencies to disclose their crypto holdings and pay taxes on any capital gains they may have earned. According to the new rules, if an individual has held cryptocurrencies for less than 36 months, any profits they make from selling the cryptocurrencies will be considered short-term capital gains and will be taxed at the individual’s marginal tax rate. If the individual has held the cryptocurrencies for more than 36 months, the profits will be considered long-term capital gains and will be taxed at a rate of 20% with indexation benefits.
Additionally, the new tax rules require individuals to pay taxes on any cryptocurrency income that is not from capital gains, such as mining or staking rewards. This income will be taxed as per the individual’s marginal tax rate.
The new tax rules are aimed at bringing greater transparency to the cryptocurrency market in India and ensuring that individuals who own cryptocurrencies pay the taxes owed on their crypto-related income.
Anndy’s humble advice is “Use regulated exchange and pay your taxes in India.”
Anndy continues to talk about ZK-rollups.
ZK-rollups (ZK-rollups) are a solution to scalability problems faced by many Ethereum developers. They allow faster and cheaper transactions on the Ethereum network while maintaining the security and decentralization of the blockchain. By aggregating multiple transactions into a single compressed transaction, ZK-rollups can significantly reduce the burden on the Ethereum network and increase overall efficiency in the system. The value of such a tool for the cryptocurrency industry is that it greatly reduces the cost of processing data, without compromising the security or decentralization that makes the monetary network unique.
The application of ZK technology allows blockchain networks to prove its authenticity of its operations in the most efficient way using the fewest possible steps. This has the power to be a transformational tool for Web3 development. In 2021, ZK-rollups are expected to be a major area of focus and growth.
Artificial intelligence (AI) is also a field that is gaining significant attention and investment globally, including in India. Web3 and blockchain technology have the potential to solve productivity issues with AI by creating a more secure and decentralized environment for AI data and models. In a traditional centralized setting, there are often concerns about privacy and security of sensitive AI data and models, as well as issues around data ownership and control. However, these issues can be addressed through greater transparency, security, and accountability in the AI ecosystem if the blockchain technology and web3 are used.
For example, AI models can be trained on decentralized data sources, and the ownership and control of the data can be managed through blockchain-based smart contracts. Additionally, web3 and blockchain can help create a more equitable distribution of rewards for AI model contributors, which can drive greater collaboration and innovation in the field.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.