Taxing Cryptocurrencies do not give them legal status: Nirmala Sitaraman

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Taxing Cryptocurrencies do not give them legal status: Nirmala Sitaraman
12 Feb 2022
6 min read

News Synopsis

The Finance Minister of India, Nirmala Sitaraman has announced at the upper house of Parliament that it is India’s sovereign right to tax cryptocurrency transactions. However, any official stance on regulation will only be released after the ongoing consultation is completed.

Earlier, a 30% tax was imposed on cryptocurrency, giving some kind of legitimacy to India’s crypto ecosystem. The CEO of WazirX, Nischal Shetty has even said that the government of India legitimises the industry to a large extent with taxation. 

The government of India introduce a tax on transactions of virtual digital assets, including non-fungible tokens (NFTs). It also announced a 1% tax deducted at source on the transfer of assets over a certain threshold that is yet to be specified. 

The crypto legislation of India is still in progress. The country plans to go public with its crypto bill twice a year, and both times the legislation never made it into Parliament for discussion. The finance minister also clarified that the crypto bill can be different from the 2019 proposal.

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