Nirmala Sitharaman, India’s finance minister, said government officials constantly monitor the crypto sector, India Today reported Monday.
The following is an excerpt from her presentation at the India Today Budget Roundtable 2022 on the “State of India’s Economy: The Final Word”: We have a team of people monitoring, watching, and listening to the crypto market. I get feedback from them continuously.
Also, the finance minister said that the Reserve Bank of India (RBI) is in the process of issuing India’s central bank digital currency (CBDC), the digital rupee. Still, she clarified that crypto taxation should be implemented first.
In her budget speech last week, the finance minister suggested that cryptocurrency income would be taxed at 30% without any deductions, except for the cost of acquisition.
An article in the publication quoted Indian Central Board of Direct Taxes (CBDT) Chairman J. B. Mohapatra, saying: Crypto investors should know that transactions done before April 2022 will be subject to tax. The taxability of cryptocurrency is assured for this financial year.
Some are viewing the finance minister’s crypto tax proposal as a step to legitimise the sector, but many are concerned that it will stifle innovation.
A petition has been signed by thousands of Indians asking the government to introduce reasonable cryptocurrency tax policies after Indian finance minister Nirmala Sitharaman proposed taxing crypto income at 30% earlier this month.
In India, a petition has been launched on Change.org urging the government to implement a crypto tax policy. The petition was launched by YouTuber Aditya Singh, who runs the channel Crypto India. The petition calls on India’s Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman.
During her budget speech, the finance minister also said the RBI would introduce its central bank digital currency (CBDC) in the next financial year beginning April 2022. In his speech, India’s Prime Minister Narendra Modi said the digital rupee would boost the digital economy and revolutionise the fintech industry.