Crypto India: ‘Crypto Is Legitimate or Not Will Be Decided Later’- Indian FM Sitharaman

In an interview with Times Now, Indian Finance Minister Nirmala Sitharaman cleared the air around the Government’s plan to regulate cryptocurrency. ‘Whether crypto is legitimate or not will be decided later. But they’re taxable; that’s my prerogative,’ she said.

Timeframe for Crypto Regulation In India

On Thursday, Sitharaman highlighted the concerns regarding digital assets and their future in India. Replying to a question about banning cryptocurrency in India, Sitharaman said before hurrying over any decision, we need to wait until the consultation is over, and it may take some time.

In a big move to bring digital assets transactions under the tax bracket, FM Sitharaman, on February 4, presenting the Union Budget 2022-23 in Parliament, announced that any income from the transfer of any virtual digital asset shall be taxed at a rate of 30%.

“No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of acquisition,” she added. 

Sitharaman also announced the imposition of 1% TDS on payment made concerning the transfer of virtual digital assets. In addition, “the gift of the virtual digital asset is also proposed to be taxed in the hands of the recipient,” she further added.