Finance Minister Nirmala Sitharaman has stated that the government will soon provide clarification on the formalisation of cryptocurrency.<\/p>\n\n\n\n
During a post-budget engagement hosted by industry body PHD (progress, harmony and development) Chamber of Commerce and Industry, Sitharaman responded to a query about cryptocurrency regulation by saying that the Centre has a consultation procedure in place.<\/p>\n\n\n\n
“We will come up with clarity soon,” the finance minister continued.<\/p>\n\n\n\n
The government has previously declared that virtual digital assets will be taxed in the budget for 2022-2023<\/a>.<\/p>\n\n\n\n According to revenue secretary Tarun Bajaj, income tax<\/a> return forms would have a distinct column for disclosing cryptocurrency earnings and paying taxes beginning next year.<\/p>\n\n\n\n From 1 April 2022, the government will levy a 30% tax, plus cess and surcharges, on such transactions, in the same way as it does on profits from horse races or other speculative transactions.<\/p>\n\n\n\n Mr Bajaj previously stated that earnings from cryptocurrencies<\/a> have always been taxed, and in the proposed budget it is not a new tax, but rather provides clarity on the matter.<\/p>\n\n\n\n “The provision in the Finance Bill is related to taxation of virtual digital assets. It is to bring certainty in taxation of cryptocurrencies<\/a>. It does not convey anything on its legality which would come out once the Bill (on regulating such assets) is introduced in Parliament,” Mr Bajaj added.<\/p>\n\n\n\n