Cryptocurrency tax

  • February 2, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Cryptocurrency tax

Finance Minister Nirmala Sitharaman in her Budget 2022 has announced a flat 30 percent taxation on income from crypto and digital assets.

Has the government imposed a tax on digital currency and made it legal?

FM’s announcement led to several people wondering as to whether the Finance Minister has indicated towards legalisation of Cryptocurrency in India. The answer is not a simple YES or NO.

In her post Budget press conference, the Finance Minister had categorically said that anything to be called a “Currency” must have the sovereign backing by the Reserve Bank of India. So, she added that what we call a crypto-currency is actually a crypto-asset and not a Currency. FM further asserted that the term Crypto-currency is not a correct term.

However, since the income upon these would be taxed, the indication is that these will be legalised as Assets class and not as currency.

Cryptocurrency tax