Bitcoin, Ethereum, other cryptocurrencies will never become legal tender in India, says Govt official
India Today
Bitcoin, Ethereum or NFT will never become legal tender. This means that these won't be accepted as an official mode of payment in India.
Bitcoin, Ethereum, and other cryptocurrencies along with non-fungible tokens (NFTs) will never become legal tender in India, Finance Secretary TV Somanathan said on Wednesday. People investing in private crypto must understand that it does not have the authorisation of the government, the official sounded a note of caution.
The digital rupee, which is proposed to be launched by the Reserve Bank of India (RBI), will be a legal tender, he said.
The Finance Secretary's statement comes a day after Finance Minister Nirmala Sitharaman in the Union Budget 2022 announced income from the transfer of any virtual digital asset will be taxed at the rate of 30 per cent.
The gift of virtual digital assets will also be taxed in the hands of the recipient, FM Sitharaman said.
Loss from the transfer of a virtual digital asset cannot be set off against any other income, the government said in Union Budget 2022.
To capture the transaction details, Tax Deducted at Source (TDS) will be provided on payment made in relation to the transfer of a virtual digital asset at the rate of 1 per cent, according to details in Union Budget 2022.
BITCOIN, ETHEREUM WON'T BE LEGAL TENDER