ADFinance Minister Nirmala Sitharaman has remained silent on the issue of legalizing phytocurrencies. They said that only profits from cryptocurrency transactions have been taxed and there are no plans to legalize, ban or regulate them.
He said a decision would be taken later on whether to ban or legalize it. For the time being, only taxes have been levied in the budget. He also said that it should not be interpreted as making it legal.
The Finance Minister’s explanation comes after the widespread introduction of cryptocurrencies as legalized with the introduction of taxes. The Finance Minister made his position clear after the Reserve Bank Governor issued a warning yesterday.
RBI Governor Shaktikanta Das had warned at a press conference after a meeting of the Monetary Credit Review Committee that private cryptocurrency would affect the country’s financial stability. It is clear that the RBI is sticking to its old position. Cryptocurrencies have no basic value, not even the tulip flower, the governor said.
The last budget imposed a 30 per cent tax on capital gains on cryptocurrencies. TDS was also levied at a rate of one per cent on transactions of digital assets, including cryptocurrencies. Moreover, the budget stated that the loss from the sale of these assets could not be offset by any other income.
The tax was introduced in the budget as the government was considering the Cryptocurrency and Regulation of Digital Currency Bill. The bill is not mentioned in the list of items to be considered in the budget session.
Content highlights: Cryptocurrency Regulation, Crypto banning, Cryptocurrency taxation.