Lagatar24 Desk
New Delhi, Feb 1: Finance Minister Nirmala Sitharaman stated in a post-Budget press conference in New Delhi on Tuesday that the digital currency to be produced by the Reserve Bank of India will not be taxed at 30% like other cryptocurrencies already traded in the market.
Because ‘currency’ may only be issued by central banks, all other cryptocurrencies, according to the finance minister, are assets that must be taxed when traded.
“We are not taxing currencies as crytpo are not currencies. They cannot be as currency can only be issued by the central bank. Everything else are assets created by individuals and we are taxing profits made out of transactions of those assets, at 30 per cent,” she said.
The government will also trace the money trail in crypto transactions, according to the finance minister, and every transaction would be subject to a 1% TDS.
We are also tracking every trail of money in that (transaction of crypto assets) by imposing 1% TDS at every transaction: Finance Minister Nirmala Sitharaman pic.twitter.com/kXpzY2yu3k
— ANI (@ANI) February 1, 2022
The Reserve Bank of India would launch ‘digital currency’ sometime in the financial year 2022-23, according to Finance Minister Nirmala Sitharaman. She also stated that the administration was in talks with stakeholders and experts to develop a cryptocurrency policy.
