During the present Budget session of Parliament, Finance Minister Nirmala Sitharaman stated that the decision on whether or not to prohibit cryptocurrencies in India will be made following consultations.
In his response to the Rajya Sabha’s Budget debate on Friday, FM clarified the laws of cryptocurrency in India. Then, saying that taxing virtual assets does not imply that the government is legalizing them. Sitharaman responded to the decision to levy a 30% tax on gains from virtual assets by saying,
“We are not doing anything to legalize or outlaw cryptocurrencies.”
During her Budget speech, the FM proposed that gains originating from virtual digital assets be taxed at a flat rate of 30%. That’s, regardless of the individual’s income tax slab rate. In addition, on transfers of such assets exceeding a specific level. Which is, a 1% tax deducted at source (TDS) will be applied. She also suggested that losses from crypto assets may not be deducted from other sources of income.
Sitharaman has advocated that the Reserve Bank of India (RBI) release Digital currency or Digital Rupee beginning in 2022-23. Also, based on blockchain and other technologies. According to her, the introduction of Central Bank Digital Currency (CBDC) will give a significant boost to the digital economy. Thereby, resulting in a more efficient and cost-effective currency management system.