While the Indian crypto industry is hoping for regulatory clarity in Budget 2022, local media reports , from CREBACO’s Sidharth Sogani explains the bill is unlikely to be introduced on February 1st.
AMBCrypto talked with CREBACO’s Sidharth Sogani to learn more about the bill’s current status. The law is unlikely to make it to Parliament during this budget session, according to the executive, because it “is not ready yet.” He then went on to say,
“The bill is prepared, it gets approved by the Cabinet and then it goes to the Parliament.”
“So we have no information of the bill being presented to the Cabinet yet.”
According to local media sources, the government requires more time to debate the difficult matter of cryptocurrency and DeFi. During the Indian Parliament’s Winter Session, which began on November 29 and ended on December 23, the much-anticipated crypto-bill failed to make it to the house. This was the second time the bill had been moved forward.
According to Sogani, the administration may consider crypto-taxation this time around. He asserted,
“Most probably in the budget we will hear about taxes–direct and indirect taxes would be”
“addressed by the finance minister. So I believe that the ambiguity in with the exchanges,”
“which the tax departments had last month, that would be resolved.”
In India, key bitcoin service providers have been under investigation for alleged tax avoidance over the past few months. For example, WazirX was apprehended for allegedly evading 400 million rupees in goods and services tax (GST).
Sogani expects to see more examples like these in the future.
“Issues like long-term capital gain tax, under what heading it should be,”
” you know, shown in the books of accounts of companies and individuals.”
“Also, the GST, the percentage, all those things will be clarified.”
According to Sogani, the reason for just including certain components of the legislation is that
“In order to do that, you don’t need to make a bill.”
“It can be introduced with notifications.”
There is also speculation that the government may levy TDS (tax deducted at source) and TCS (tax collected at source) on cryptocurrency transactions. According to reports, the policy will be announced after a consensus has been reached on it.
In this context, ETtech stated that start-up organisation IndiaTech had written to Finance Minister Nirmala Sitharaman to clarify restrictions by suggesting amendments to current laws. However, according to some reports, the government has already hired tax specialists to draft disclosure and taxation requirements for firms and family offices dealing with or owning cryptos.
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