New Delhi: The government reflects on changes in income tax laws to bring Cryptocurrency under the tax net, with some changes that can form a part of the budget next year, a top official said.
Tarun Bajaj’s income secretary said that in terms of income tax, some people have paid capital gain tax for the revenue of the CryptoCurrency, and in connection with the tax and services (GST) also the law is “very clear” that the tariff will occur in effect as in terms of service other.
CryptocurrencyLive “We will receive a call.
I understand that people pay taxes on it.
Now it really grows a lot, we will see if we really can bring some changes in legal position or not.
But it will be a activity Budget.
We have approached the budget, we have to see the point of time, “said Bajaj to PTI in an interview.
Asked whether the TCS provisions (tax collected in sources) can be introduced for Crypto trading, the secretary said “If we come with new law, we will see what to do”.
“But yes, if you make money, you have to pay taxes …
we have got a tax, some have treated it as a Capital Gain asset and tax,” he said.
Asking whether people involved in the Cryptocurrency trade will be categorized as facilitators, brokers and trade platforms and how taxation will be carried out under GST, Bajaj says “There will be things available in other services too.
So whatever GST tax is subject to GST , it will apply to them.
“” They must be registered.
GST law is very clear.
If there is an activity, if there is a broker who helps people and charges the broker, GST will be charged, “he said.
Separately, the government tends to introduce bills in the cryptocurrency during the parliamentary winter session starting November 29, amid fears of the currency allegedly used to attract investors with misleading claims.
In particular, there are increased number of ads, displaying even movie stars, which promises easy and high return on investment in Cryptocurrency in recent times.
At present, there are no regulations or prohibitions for using cryptocurrency in this country.
Against this background, Prime Minister Narendra Modi, last week, held a meeting of Cryptocurrency with senior officials and indications was that strong regulatory measures can be taken with this problem.
Earlier this week, the Fixed Committee on Finance, chaired by members of the BJP Jayant Sinha, met with representatives from Crypto exchange, Crypto Chain and Crypto Asset Board (BACC), among others, and arrived at the conclusion that Cryptocurrency should not be banned, but it must be Regulated.
The RBI has repeatedly repeated its strong view of the cryptocurrency which said they pose a serious threat to the stability of macroeconomic and state finances and also doubts the number of investors traded in them and the value of the claimed market.
The Governor of RBI Shaktikanta Das also earlier this month has repeated his views so as not to allow Cryptocurrency to say they are a serious threat to any financial system because they are not regulated by the central bank.
The Supreme Court in early March 2020, had canceled the Cryptocurrency which was prohibited by a circular RBI.
Following this on February 5, 2021, the central bank has instituted an internal panel to suggest the central bank digital currency model.
RBI has announced its intention to come out with official digital currencies, in the face of cryptocurrency proliferation such as Bitcoin where the central bank has a lot of worries.
Personal digital currency / virtual currency / crypto currency has gained popularity in the past decade or more.
Here, regulators and the government have been skeptical about this currency and worry about the relevant risks.
It can be noted that on March 4, 2021, the Supreme Court has set aside RBI’s circular on April 6, 2018, prohibiting banks and entities regulated by it from providing virtual services.