The Finance Minister said in the Rajya Sabha that the decision to give legal recognition to crypto or not will be based on the suggestions received from the ongoing discussions on it.
Tax on digital assets does not mean crypto recognition
Cryptocurrencies after bringing digital assets under tax net (crypto currency) putting an end to the ongoing discussion on the possibilities of legitimacy Finance Minister ,finance minister) Nirmala Sitharaman made it clear today that the tax (Tax) should not be seen as an initial step in the legalization of cryptocurrencies. The Finance Minister said this while replying to the discussion on the budget in the Rajya Sabha. In this budget, the government has announced a tax of 30 percent on digital assets which include cryptocurrencies, while there is also a proposal to levy TDS on their transactions. Apart from these, cryptocurrencies have not been recognized in the country at the moment. In such a situation, many experts believe that with the imposition of tax, the government has moved towards recognizing crypto. Clarifying the picture on these estimates, the Finance Minister said that discussions are on and taxation should not be linked to the legal recognition of crypto.
What did the Finance Minister say in the Rajya Sabha?
Responding to the discussion on the budget in the Rajya Sabha, the Finance Minister said that in the present situation, I am neither going to ban nor give recognition to it. The decision to ban or not to impose will be taken when the ongoing discussion on it is completed and suggestions will be given on it. Earlier, in a conversation with reporters after the budget speech, the Finance Minister had already clarified that she is levying tax on crypto before deciding on rules and recognition because people are transacting in crypto and earning a lot of profit. In such a situation, the government cannot wait for the finalization of the rules to collect tax from the high profit earners.
Higher tax proposed on virtual digital assets
In the budget, the government has put digital assets in the 30 percent tax category on the lottery side. According to the budget proposal, the government has announced a 30 percent tax on the income earned on digital assets. Along with this, the government also announced to levy TDS of 1 percent on every transaction of digital assets. The government clarified that TDS is being levied so that the information of those doing business in digital assets can be brought into the system. The Finance Minister clarified that digital assets will include all the assets being traded in the virtual crypto world which includes cryptocurrencies and NFTs etc. After the announcement in the budget, investors associated with the crypto world had predicted that crypto would become legal due to taxation. However, the government clarified that the tax is being levied on the income earned from crypto in legal currency. In such a situation, there is no question of the legality of crypto.