According to Finance Secretary TV Somanathan NFT Bitcoin Ethereum along with non-fungible tokens, (NFTs), will never be legal tender in India. The official cautioned that private crypto investments must be aware that they do not require the approval of the government.
He said that the digital rupee, which will be launched by Reserve Bank of India (RBI), would be legal tender.
This statement by the Finance Secretary comes a day after Nirmala Sitharaman, Finance Minister, announced that income from any transfer of virtual assets will be subject to a 30% tax.
FM Sitharaman stated that virtual assets gifted to the recipient will be subject to tax.
The government stated in Union Budget 2022 that losses resulting from the transfer a virtual asset can’t be offset by any other income.
According to Union Budget 2022, TDS (tax deducted at source) will be used to capture transaction details for payments made in relation to virtual assets transfers at a rate of 1%.
ETHEREUM, BITCOIN WON’T BE A LEGAL TENDER
NFT, Bitcoin, Ethereum and Ethereum will never be legal tender. These currencies will not be accepted in India as a payment method.
“Crypto-assets” are assets whose values will be determined by two persons. ANI quoted the Finance Secretary as saying that you can buy crypto, gold, and diamonds but not the authorization value by the government.
NO AUTHORISATION OF THE GOVT
The Finance Secretary also stressed that private crypto investments should not be made without the approval of the government.
The success of an investment is not guaranteed. If one experiences losses, the government is not responsible.
RBI DIGITAL RUPEE WILL BE LEGAL TENEDER
According to a government official, the digital rupee will be legal tender and is being proposed to be issued in the RBI.
The Finance Secretary stated that “rest all aren’t legal tender, won’t, and will never become legal tender.”
He stated that the proposed digital currency of RBI would never default, and that the money will be issued by RBI, but the nature of the money will be digital.
“No one knows the true value of Ethereum. Their daily rate fluctuates. A person who earns a living through crypto currency will have to now pay 30%. He stated that this is the new government policy.
This taxation of 30% applies to crypto as well as all speculative income.
“For instance, if you take part in horse racing, it attracts a 30 percent tax. Any speculative transaction already attracts a 30% tax. TV Somanathan stated that crypto will be taxed at the same rate.
“Currently, there is no clarity regarding cryptocurrency. It could be business income, capital gain, or speculative. Some people declare crypto assets while others don’t. The official stated that the uniform tax rate would be 30%.