Will prepare a law for India cryptocurrency A Bloomberg report said that only after a global consensus is reached on regulating such assets. A source told the news agency that the government is not planning legislation to regulate or tighten the provisions anytime soon.
The Indian government took a step closer to clearing the uncertainties about the legal status of crypto transactions as it decided to tax income from transfers of virtual assets at 30% as announced by Finance Minister Nirmala Sitharaman in her Budget 2022 speech. revealed the plan. It had earlier planned to bring in a law to clarify the government’s stand on the matter.
From April 1, a 30% tax will be levied on the transfer of Virtual Digital Assets (VDA) or Crypto Assets. In addition, 1% Tax Deduction at Source (TDS) will be applicable on every transfer of such property. However, the TDS provision will be activated from July 1.
Prime Minister Narendra Modi, in his address to the World Economic Forum in January, said that there is a need for a global equitable approach on cryptocurrencies and that one nation’s move will not be enough.
Crypto investments in India have flourished in March 2020 after the country’s top court quashed the restrictions imposed by the Reserve Bank of India. An October report by crypto-analysis firm Chainalysis found that the Indian market grew 641% from July 2020 to June 2021. ,
During the budget session, FM Sitharaman clarified that taxing virtual assets does not mean that the government is legalizing it. “It is not doing anything to legalize or prohibit it at this stage,” said Sitharaman, responding to the budget debate in Rajya Sabha on the decision to impose 30% tax on gains from virtual assets.
(with inputs from Bloomberg)
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