Bitcoin inching back towards $30,000? A quick look at the Indian government’s policy on crypto
A quick look at the Indian government’s policy on crypto
Cryptocurrencies in India: The legal framework
What is the current tax on cryptocurrency in India?
In Union Budget 2022, Union Finance Minister Nirmala Sitharaman presented a tax regime for virtual and digital assets which also include cryptocurrencies. Thus, those investing in cryptocurrencies are required to report their profits and losses as a part of their income. There is a 30 per cent tax on the transfer of virtual digital assets. Further, there is a 1% Tax Deducted at Source (TDS) on a buyer’s payment beyond a prescribed limit. In addition, cryptocurrencies as a gift is subjected to tax.
A section of investors has backed the taxation of cryptocurrencies, saying that such a move will make cryptocurrency legal in India.
What is Cryptocurrency Bill 2021?
Cryptocurrency Bill 2021 aims to regulate the thriving cryptocurrency market in India. The bill is also being viewed as the necessary legal framework before the creation and launch of the official digital currency by the Reserve Bank of India.
Speaking in Lok Sabha during the Winter Session of the Parliament, Minister of State for Finance Pankaj Chaudhary said that Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage. “Therefore, any legislation on the subject can be effective only with significant international collaboration on the evaluation of the risks and benefits and evolution of common taxonomy and standards,” Chaudhary had said.
