Budget 2022 | Here’s what Finance Minister Nirmala Sitharaman said about taxing cryptocurrencies
Finance Minister Nirmala Sitharaman, while presenting the 2022-23 Union Budget on February 1, announced a 30 percent tax on income generated from the transfer of any digital asset.
However, she was quick to clarify that the Government of India is yet to recognise cryptocurrency. “We are only taxing the profit made on these assets since a large number of crypto assets are being bought and sold; we are now taxing cryptos so we know who is buying them and keep a tab on the money trail,” the Finance Minister explained.
Nirmala Sitharaman further said: “Will come out with crypto regulations and laws only after the consultation process is completed; cannot give any timeline for the completion of the consultation on cryptos.”
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She added: “We have not underpromised, we are being realistic.”
Elaborating on whether India will be recognising digital currency, the Union Finance Minister said: “There is a process on the consultation on cryptos. Before the consultation is completed, we cannot come out with regulations for crypto. Currency is that which comes from a central bank with the authority to issue currency. Any currency must have a sovereign backing and the Reserve Bank of India (RBI) is the only authority that can issue currency.”
She added: “Digital currency has many advantages in payments, remittances, and faster settlements. We have made a provision for RBI to issue digital currency (CBDC).”
Refusing to discuss what crypto and crypto assets are, the FM said at a presser after the Budget presentation that “consultation with stakeholders is underway. The description of digital assets will come after the consultation”, adding there is no clarity yet on how the Government of India will regulate
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