Crypto tax regime in India: Does taxation on Crypto make it legal? Explained
Zee News
In her Budget speech, Finance Minister Nirmala Sitharaman said that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 percent.
New Delhi: Finance Minister Nirmala Sitharaman in her Budget 2022 has announced a flat 30 percent taxation on income from crypto and digital assets.
In her Budget speech on Tuesday, Finance Minister Nirmala Sitharaman said, "There has been a phenomenal increase in transactions in virtual digital assets. The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime. Accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 percent." (Also read: Union Budget 2022: No change in Income Tax slabs, revised ITR filing window now open for 2 years from AY)
FM’s announcement led to several people wondering as to whether the Finance Minister has indicated towards legalisation of Cryptocurrency in India. The answer is not a simple YES or NO. In her post Budget press conference, the Finance Minister had categorically said that anything to be called a “Currency” must have the sovereign backing by the Reserve Bank of India. So, she added that what we call a crypto-currency is actually a crypto-asset and not a Currency. Sitharaman further asserted that the term Crypto-currency is not a correct term. (Also read: Union Budget 2022: Five key taxation points that impacts the common man, salaried class)