Govt to ban or not ban cryptocurrencies? FM Sitharaman responds

livemint.com:

Finance Minister Nirmala Sitharaman during the ongoing Budget session of Parliament said that banning or not banning cryptocurrencies in India will come subsequently after consultations. 

Replying to Budget debate in Rajya Sabha on Friday, FM also clarified the legalities of cryptocurrency in India, saying that taxing the virtual assets does not mean that the government is legalising it. “Not doing anything to legalise or ban cryptocurrencies," Sitharaman replied on decision to levy 30% tax on gains from the virtual assets.

The FM during her Budget speech had announced the proposal of taxing gains arising out of virtual digital assets at a flat rate of 30% irrespective of the individual’s income tax slab rate. In addition, a 1% tax deducted at source (TDS) will be applicable on transfer of such assets over a certain threshold. She also proposed that losses from crypto assets cannot be set off against any other income.

Sitharaman also proposed to introduce Digital currency or Digital Rupee, using blockchain and other technologies, to be issued by the Reserve Bank of India (RBI) starting 2022-23. Introduction of Central Bank Digital Currency (CBDC) to give a big boost to digital economy, leading to a more efficient and cheaper currency management system, she said.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!