New Delhi, India: With Budget 2022, the central government intends to make major modifications to income tax legislation. The government is considering steps to bring cryptocurrencies within the tax system, according to Revenue Secretary Tarun Bajaj.
According to Bajaj, some people are already paying capital gains tax on bitcoin revenue, and the law is “quite explicit” that the rate would be the same as it is for other services when it comes to the Goods and Services Tax (GST).
We’ll be in touch with you as soon as possible. People are paying taxes on it already, as far as I’m aware. We’ll see if we can make any adjustments to the legal positions now that it’s grown so much. That, however, would be a Budget-related action. In an interview with PTI, Bajaj said, “We are already close to the Budget; we have to look at that point in time.”
He also clarified whether a TCS (Tax collected at Source) provision might be implemented for crypto trading, saying, “If we come up with a new law, we’ll see what we can do.”
“However, you must pay taxes if you make money… Some have classified it as an asset and paid capital gains tax on it,” he noted.
Bajaj responded to a question on whether people involved in cryptocurrency trading would be classified as facilitators, brokers, or trading platforms, as well as how GST taxation would be applied “Such features would already be available in other services. As a result, whichever GST rate they are subjected to would apply to them.”
“They must complete the registration process. The GST law is fairly straightforward. GST will be applied if there is an activity, such as a broker assisting customers and charging a brokerage fee “he stated.
Prime Minister Narendra Modi asked all democratic countries to work together to ensure that Bitcoin does not fall into the wrong hands, warning that it can harm children.
“It’s critical that all democratic nations work together on this to ensure that it doesn’t wind up in the wrong hands, which might harm our children,” PM stated of bitcoin.