India’s Finance Minister’s Latest Statement on Cryptocurrency, 30% Crypto Tax, 1% TDS

Share This Post

In a recent announcement, the Indian Finance Minister, Nirmala Sitharaman, said that taxing income from cryptocurrency investments and other virtual assets must not be seen as a step in legitimizing such transactions. Rather, it is a means to check the source and trail of such transactions.

“We haven’t said that this is currency. We haven’t said that this has intrinsic value, but certain operations are taxable for the sovereign and that is why we have taxed,” PTI quoted Sitharaman as saying at a high-level panel discussion organized by the International Monetary Fund (IMF).

The Minister further continued, “We did announce that on the income that was generated out of the transactions of these crypto assets will be taxed at 30 per cent and over and above that, there is a 1 per cent tax deduction at source which is also imposed on every transaction. So, through that we will be able to know who’s buying and who’s selling it.”

The Finance Minister also talked about the global regulation of cryptocurrencies to tackle the risks on money laundering and terror-funding. In this discussion, Sitharaman said that non-governmental activity of crypto transactions via un-hosted wallets will also be tracked. However, she did contemplate that cross-border payments between countries will become seamless via the central banks-led digital currencies.

She said to PTI, “The risk which worries me more on the non-governmental domain is essentially you’re looking at unhosted wallets across the borders, across the globe… So, regulation cannot be done by a single country within its terrain through some effective method and for doing it across the borders, technology doesn’t have a solution which will be acceptable to various sovereigns at the same time applicable within each of the territory.”

During the panel discussion on, ‘Money at a Crossroad: Public or Private Digital Money’, Sitharaman also talked around how these crypto risks must be differentially approached depending on the use case and country’s economy. She stressed on how this regulation needs to be stringent, adept, and nimble to track all activities and not miss anything of importance. She pointed out that unless all countries unite under the crypto regulation procedures, there will be imminent risk of money laundering.

“I harp on that very much because I think the biggest risk for all countries across the board will be on the money laundering aspect, and also on the aspect of currency being used for financing terror,” she remarked.

The Union Budget for2022-23 proposed a 30% tax on income made from crypto assets to be effective from April 1, 2022, and also imposed a 1% TDS on crypto transfers. When asked about the Central Bank Digital Currency (CBDC), Sitharaman said it will happen sometime in 2022.

Nitish Vaibhav
Nitish Vaibhavhttp://thetradingbay.com
Nitish Vaibhav is the Founder of the The Trading Bay. A computer science engineer turned an Entrepreneur 5 years ago. He has been in trading since 4 years in Forex and Crypto using his price action strategies. Involved in Content Creation full time for 3 years, Nitish is top rated writer on many content writing websites. He is also a YouTuber in India making videos about Crypto and Forex.

Related Posts

Top 5 Small Cap Stocks You Must Watch in 2023

While the world eagerly follows the trail of renowned...

Best Web 3.0 Crypto Coins to Invest in 2023

Web 3.0 is ushering in a new era of...

Crypto Tax Regime: A Guide to The Tax on Cryptocurrencies in 2023

Over the past few years, while cryptocurrencies have gained...

Top 7 Emerging Industries to Invest in For the Next 10 Years

Individuals who made strategic investments in some industries a...

What is Forex Algorithmic Trading: Basics and Strategies

Over the course of years, the forex trading industry...
0
Would love your thoughts, please comment.x
()
x