Taxing income doesn't give private cryptos legitimacy: FM Sitharaman

business-standard.com:

At the customary post-Budget media interactions, Finance Minister Nirmala Sitharaman and her topmost bureaucrats touched upon a number of issues. The minister said the government taxing income from digital virtual assets did not give them legitimacy and that issue was being dealt separately in the planned cryptocurrency Bill. She also expressed confidence that the Budget targets were achievable. Excerpts:

On cryptocurrencies

The RBI will be issuing a digital currency. A currency can be issued only by the central bank even if it is a cryptocurrency. Anything outside that though we refer to them as currencies, they are not so. Buying and selling is happening and profits are being made, and nothing stops me from taxing them. Taxing does not confer on them legitimacy.

We are not taxing a currency (digital rupee) that is yet to be issued. Everything outside this is an asset created by individuals, and if profits are made in transacting that asset, it will be taxed at 30 per cent. We are also tracking every trade in the crypto world by imposing 1 per cent tax deducted at source. We have circulated a paper, and are receiving inputs. Public stakeholders are also giving their inputs. So regulation will go through that process, and we will not wait for regulation to tax people earning profits from such assets.

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On Budget estimates

In the February 2021 Budget, we were told we had been conservative, but we were right in our assessment. And being conservative is not being overly optimistic. We are sure we will achieve the numbers, and will probably top them.

On revenues

If revenues are compared to the size of GDP, excise duty cannot be linked to