A detailed bill on cryptos is expected to be presented for clearance at a meeting of the Union Cabinet prior to or during the winter session beginning from November 29.
According to sources, once the bill describing the regulation of cryptos, the purpose to tax earnings from them and their classification gets Cabinet’s nod, it may be presented for passage in the winter session of the Parliament.
After the aim to tax earnings from cryptocurrencies is formalized in the legislation, the solutions for implementation are expected to be announced in the finance bill during the Budget session which usually begins in January’s last week.
As per sources, FM Nirmala Sitharaman’s budget is expected to include a step that will clear the ambiguity on the fate of cryptos in the nation.
Top sources in the government have been signaling that India may follow a middle path, unlike a prohibition as in China, with the earnings from cryptocurrencies luring both indirect and direct taxes.
Though the government is mum, cryptocurrencies are not intended to be regarded as a currency, as currency coins and notes are supported by statute and are regulated by the Reserve Bank of India in consultation with the Centre.
According to a senior official said that the regulations the government is intending to bring in could involve allowing only those cryptos in the country that have been agreed upon by the authorities to be traded and listed on exchanges. This could eventually lower both the count of players and the risks involved.