Finance Ministry is likely to issue notification to exclude some transactions from crypto tax. The Finance ministry is discussing representations received for exemptions, likely to issue notification in June. The Finance Ministry is likely to exclude hospitals using blockchain technology from crypto tax.
The government announced 30% tax on crypto income, 1% TDS on transactions. Notification likely to exclude reward points on banks’ digital cards, flight miles.
De facto reward points, flight miles come under definition of virtual digital assets. No rethink by govt on 30% tax on crypto income. The government has rejected representations to do away with 1% TDS on crypto transactions.
Economic Affairs Secretary Ajay Seth had recently said that the government is close to readying a concept paper on cryptocurrency. The government has taken inputs of stakeholders, IMF and World Bank for it. The government will soon start discussions with other countries on building consensus on regulations in crypto currency. The government had listed a bill to regulate cryptocurrency in last winter session of Parliament, but the bill never got tabled.
Government in the Union budget announced the tax on income but said it does not provide any kind of legality to the digital currency. The Reserve Bank of India has time and again warned of risks involved with cryptocurrency. Finance Minister Nirmala Sitharaman also said that it is beautiful technology but since the origin of a transaction cannot be traced it leads to risks of terror financing and money laundering.
