The government is planning to roll out the Finance Bill which will regulate all virtual assets including cryptocurrencies. They are developing an FAQ on the taxation of the same. As per a recent report, these FAQs will provide users a proper clarification in a distinctive way on the applicability of income tax and GST on virtual digital assets.
The Department of Economic Affairs (DEA), RBI, and the revenue department are drafting the set of frequently asked questions (FAQs). This would also be evaluated by the law ministry. FAQ on taxation on cryptocurrency and virtual digital assets is also on work and is to be implemented soon. An opinion is being addressed by the law ministry to make sure that there are no loopholes in the FAQ, as these FAQs are the information provided to the general public which has no legal righteousness.
DEA, RBI, and revenue department – the three departments are preparing this questionnaire to ensure that there is full transparency on the taxation aspect mentioned in the bill. This goes for both those who deal with virtual digital assets and cryptos and for the field tax offices also. The Budget of this year concentrated on introducing the new Finance Bill, which gives a much-awaited perspective on the imposing of income tax on virtual digital assets or cryptocurrency assets.