Preparations to impose tax on earnings from cryptocurrencies, there will be change in the tax law in the budget

Tax on Cryptocurrency: Taxes may be levied on the income earned from investing in cryptocurrencies. The government is considering to amend the Income Tax Act to bring income from cryptocurrency under the tax net. It is believed that in the budget to be presented on February 1, 2022, next year, tax can be announced on the earnings from investments in cryptocurrencies.

Tax provision in the budget

Revenue Secretary Tarun Bajaj said that while some people are already paying Capital Gain Tax on income from cryptocurrencies, the law is very clear with respect to GST as well. He said that “I understand that, people are already paying taxes on this. But the income from this has really increased, so we will see if we can bring some changes in the position of law. But this It will be decided only through the budget.

A provision of TCS (Tax Collected at Source) is expected to be introduced in the budget for crypto trading. If you earn money then you have to pay tax, we have already got some taxes. Some have treated it as an asset and have paid capital gains tax on it.

On categorizing people involved in cryptocurrency trading as facilitators, brokerages and trading platforms and levying tax under GST, Bajaj said, “It is clear in the GST law, if there is a broker who is helping people and charging brokerage fee.” GST will be charged from him.

Bill on cryptocurrencies in winter session

The government is likely to introduce a bill on cryptocurrencies during the winter session of Parliament that begins on November 29. People are being lured towards cryptocurrencies through misleading claims and advertisements. The major meeting on cryptocurrencies chaired by Prime Minister Narendra Modi raised concerns over over-promising & non-transparent advertising misleading the youth and these It has been decided that these ads will be cracked.

demand to regulate

In the meeting of the Parliamentary Standing Committee on Finance regarding Cryptocurrency, most of the members have demanded to regulate cryptocurrency. In the meeting, some members have also expressed concern about the safety of investors’ investments in cryptocurrencies.

RBI governor has also expressed concern

Earlier, the Reserve Bank of India has also repeatedly reiterated its firm opinion against cryptocurrencies. RBI Governor Shaktikanta Das had said only last week that this could pose a serious threat to the country’s macroeconomic and financial stability.

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