FM on Cryptocurrency: Finance Minister Nirmala Sitharaman once again clarified the government’s stand on cryptocurrency. He said that it is the right of the government to tax the profit arising from the transaction of cryptocurrency.
- Finance Minister gave reply in Rajya Sabha
- The rule of 30 percent tax will be applicable from April 1
- Answer to the question raised on crypto currency
New Delhi : FM on Cryptocurrency : Finance Minister Nirmala Sitharaman once again clarified the government’s stand on cryptocurrency. He said that it is the right of the government to tax the profit arising from the transaction of cryptocurrency. He also said that the decision about banning it will be taken on the basis of the decision of deliberation.
- Finance Minister replied to the discussion on the general budget
Replying to the discussion on the general budget in the Rajya Sabha, Sitharaman said, ‘I am not going to validate or ban cryptocurrency at this time. Whether this will be banned or not, any decision about this will be taken on the basis of the decision emerging from the deliberations.
- …the right of the government to levy tax
Regarding levying tax on profits from crypto currency, he said, ‘Whether to validate it or not is a different question. But I have imposed tax because it is the right of the government to levy tax. The Finance Minister was replying to a question raised by Congress’s Chhaya Verma on cryptocurrency today. Verma was asked about the legality of taxing crypto currency.
- Recognition of ‘Digital Rupee’ as digital currency only
Let us tell you that in the budget presented by Nirmala Sitharaman in Parliament on 1 February, 30 percent tax on crypto currency transactions was talked about. After this, there was a discussion among the investors of the government to validate it. The Finance Minister had said in his budget speech that only the ‘Digital Rupee’ issued by the RBI would be recognized as a digital currency.
- The new rule will be applicable from April 1
The government will levy 30 percent tax on the profit arising from the transaction of any digital asset or cryptocurrency from April 1. The budget for the financial year 2022-23 also proposes to levy one percent TDS (tax deducted at source) on payments in online digital currency items above Rs 10,000 in a year. Also, taxation has been proposed for gifting such property.
The limit for TDS will be Rs 50,000 per annum for prescribed individuals. This includes individuals/Hindu Undivided Families. They will need to get their accounts audited under the Income Tax Act. Also, there is no provision for deduction in respect of any kind of expenditure or allowance at the time of computing income from transactions. The provision of one percent TDS on crypto currency will come into effect from July 1, 2022, while tax on profits will come into effect from April 1.