New Delhi: Minister of Finance Nirmala Sitharaman on Friday said the government has sovereign rights of tax profits made from Cryptocurrency transactions, and the decision to forbid or not prohibited will be taken based on feedback from consultation.
Replying to the general discussion about the Union budget, the minister said, “I will not legalize it or forbid it at this stage.
Prohibiting or not prohibited will come next, when the consultation gives me input”.
About profit originating from the transaction in the cryptocurrency, he states that “(what is it) is legitimate or invalid, it is a different question, but I will charge tax because it is a sovereign rule for tax”.
The minister responded to the question raised by Congressman Chhaya Verma in Cryptocurrency.
Verma asked about the legitimacy of the Cryptocurrency Tax.
In his budget speech on February 1, Sitharaman said that only ‘Digital Rupees’ issued by the RBI will be recognized as a currency, and the government will collect 30 percent tax on increases made from other personal digital assets from 1.
April budget 2022-23 Propose 1 percent TDS for payments against the virtual currency outside the RS 10,000 in a year and taxation with the prize in the hands of the recipient.
The threshold limit for TDS will be Rs 50,000 a year for certain people, which include individuals / HUPS requested to get their account audited under ACT I-T.
Also, there is no reduction in connection with any expenditure or allowances that are allowed while calculating revenue from the transaction in the asset.
It has also determined that losses from transfers of virtual digital assets will not be allowed to depart for other income.
Provisions related to 1 percent TDS will take effect from July 1, 2022, while the increase will be taxed April 1.
The government has sovereign rights for Cryptocurrency tax: FM
