Sources told Republic on Tuesday that a cryptocurrency measure will be introduced in the Parliament’s winter session, which is a significant development.
The bill, dubbed ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021,’ is aimed at ‘creating a conducive framework for the creation of the official digital currency to be issued by the Reserve Bank of India,’ according to sources. It will also prohibit all private cryptocurrencies, with the exception of a few, in order to leverage the underlying blockchain technology.
The government plans to modify tax regulations in the upcoming budget to tax cryptocurrency earnings.
There have been rumours that the government is considering changes to income tax regulations to bring cryptocurrencies into the tax net, with some of these changes perhaps being included in the upcoming Budget.
According to Revenue Secretary Tarun Bajaj, some persons are already paying capital gains tax on bitcoin income, and the law is “quite clear” that the rate will be the same as for other services when it comes to the Goods and Services Tax (GST). “We’ll pick up the phone.” People are already paying taxes on it, as far as I’m aware.
The government plans to modify tax regulations in the upcoming budget to tax cryptocurrency earnings.
There have been rumours that the government is considering changes to income tax regulations to bring cryptocurrencies into the tax net, with some of these changes perhaps being included in the upcoming Budget.
According to Revenue Secretary Tarun Bajaj, some persons are already paying capital gains tax on bitcoin income, and the law is “quite clear” that the rate will be the same as for other services when it comes to the Goods and Services Tax (GST). “We’ll pick up the phone.” People are already paying taxes on it, as far as I’m aware. We’ll see whether we can actually bring in any changes in legal positions now that it’s expanded so much. However, that would be a budget-related task. We’re getting close to the Budget, so we’ll have to think about it,” Bajaj said.
The news follows a series of discussions between the business and the government aimed at establishing a framework for the usage of cryptocurrencies in India. Last week, the Parliamentary Standing Committee on Finance convened a hearing with experts on the subject of ‘CryptoFinance: Opportunities and Challenges,’ and concluded that while cryptocurrencies cannot be prevented, it must be controlled.
PM Modi is concerned about cryptocurrency.
PM Modi expressed his concerns about the use of bitcoin around the world in his keynote talk at The Sydney Dialogue on Thursday. He believes that all democracies should work together to prevent the cryptocurrency from being abused. He also advocated for combined collaboration to invest in future technological research and development, establish a trusted manufacturing base and trusted supply chains, strengthen intelligence and operational cooperation on cyber security, and prevent public opinion manipulation. The PM also emphasised the importance of developing global data governance norms.