Clarity soon on crypto formalization: FM

Nirmala Sitharaman Finance Minister has said that government will bring clarity on the formalization of cryptocurrency soon. Partaking in a post-budget interaction organized on Monday by industry body PHD Chamber of Commerce and Industry, while responding to a query on the regulation of crypto, Ms. Sitharaman said that the Centre has a consultation process for crypto formalization.

The finance minister added that they will come up with clarity soon. The government has already declared in the budget for 2022-23 that digital virtual assets will be taxed. Revenue secretary Tarun Bajaj had said the previous week that income tax return forms from the next year will have a different column for making disclosures on profits made from cryptos and paying taxes.

From April 1, 2022, the government will impose a 30% tax plus cess and surcharges, on such transactions in the same manner as it treats winnings from horse races and other uncertain transactions. Mr. Bajaj said profits from cryptos were always taxable and what the budget suggested is not a new tax but offering certainty over the issue.

Meanwhile, the government has already said that private cryptos will never be legal tender. The Reserve Bank of India has been strongly opposing private cryptos as they could have implications on national security and financial stability.

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