NEW DELHI: The government said it doesn’t treat trading in crypto assets as illegal, a day after it announced taxing such transactions just the same as winnings from gambling.
“They are in a grey area.It’s not illegal to buy and sell crypto,” finance secretary T V Somanathan said in an interview to Bloomberg Television.
Read Also Cryptic signs: Tax on e-assets opens gateway to brave, new virtual world It may not sound logical, but cryptocurrency prices rose in response to the Union Budget’s imposition of a 30% tax on income earned from transfer of virtual digital assets (VDAs), and its decision to bring in a TDS mechanism to track such transactions.The Budget’s objective was to rein in
“We have now put in a taxation framework that treats crypto assets the same way we treat winnings from horse races, or from bets and other speculative transactions,” he added.
Union Budget 2022-23: Complete coverage
After years of dilly-dallying on how to treat cryptocurrencies , the budget on Tuesday proposed taxing income from the transfer of virtual assets at 30% — effectively removing any uncertainty about the legal status of such transactions.
Read Also Nirmala Sitharaman cuts divestment target in budget, government banks on big LIC premium NEW DELHI: The Centre has set a modest target of raising Rs 65,000 crore from stake sales in state-run companies during 2022-23 and revised downwards the receipts this year to Rs 78,000 crore from the earlier estimate of Rs 1.75 lakh crore.For 2022-23, the target is 16.6% lower than the revised
The steep tax rate on crypto could dissuade trades that have been soaring in India despite the central bank’s warnings about the risks of money laundering, terrorist financing and price volatility.
The government is working on a legislation to regulate cryptocurrencies and the proposed law will have to be cleared by the Union Cabinet before before being taken to lawmakers.
Read Also It’s a conservative Budget, but estimates realistic: Finance minister F inance minister Nirmala Sitharaman said she has presented a “conservative but realistic assessment” and hopes to stay within the estimates that are part of her fourth Budget.”The Budgets are being made with realistic numbers.In last year’s Budget, it was well-established we gave the numbers,
“What will happen to the future regulation of crypto that’s an ongoing debate,” Somanathan said.“The government’s approach is to consult widely and also to look at what’s happening internationally,” he said.
Read Also Union Budget 2022: Finance minister eyes green pathway to finance The government has for the first time unveiled a sovereign green bonds issue.The bonds will be part of the Centre’s borrowing programme and proceeds will be passed on to public sector projects that reduce the carbon intensity of the economy.
“Since the word used in the document is “sovereign green
For now, the government won’t jump the gun on regulation and would stick to taxing any income that is earned from such transactions, he said.
While private virtual coins will not be a legal tender, the Reserve Bank of India plans to launch its digital currency in the year starting April 1, which will usher in cheaper, more efficient currency management, according to the government.
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