Economic Affairs Secretary Ajay Seth has informed that the Centre is ready with its consultation paper on cryptocurrencies. There needs to be a global consensus on cryptocurrencies. India would look at regulations enforced in other countries before deciding how it would regulate.
Regarding other digital asset Seth said, “Whatever way we want to deal with those assets, there has to be a broad framework on which all economies have to be together. This point has been made time and again. Even other countries are talking about the same thing. The IMF is also talking about the same thing, as is the US treasury. We are looking at a ‘global paradigm’ on digital assets.”
“Whatever it takes, it’s a dynamic situation. We are not looking at a static situation and then giving a piece meal solution. As the situation evolves, it’s continuously evaluated. Whatever it takes is done subject to overall constrains,” he added.
In the annual budget 2022-23, the Centre said the 30% tax on income from these transactions will include a 1% TDS. Beside the GST council is also mulling a 28% GST on cryptocurrencies, at par with the current GST on casinos, betting and lottery. Council also Plans to Impose 28% GST on Crypto Mining.
A new section called ‘115BBH’ has been added in the Income Tax Act, 1961, to tax digital assets. There is also a 1% TDS (tax deducted at source) on transactions in such asset classes above a certain threshold. Gifts in crypto and digital assets are also taxed.