Government to Change Laws to Tax Crypto Currency Gains

The government is considering changes in the income tax laws to bring cryptocurrencies under the tax net, as a part of the Budget next year, a top official said.

“We will see whether we can actually bring in some changes in law position or not. But that would be a Budget activity. We are already nearing the Budget, we have to look at that point of time,” Revenue Secretary Bajaj told PTI in an interview.

Over provision of TCS for crypto trading, the Secretary said “if we come up with a new law then we will see what is to be done”. “But yes, if you make money you have to pay taxes. We have already got some taxes, some have treated it as an asset and paid capital gains tax on it,” he said.

Further, replying over crypto trading Bajaj said “there would already be such things available in other services also. So whatever GST rate they are taxed at, that will be applicable on them.” “They have to get themselves registered. If there is an activity, if there is a broker who is helping people and charging brokerage fee, GST would get charged,” he said.

Earlier this week, the Standing Committee on Finance, chaired by BJP member Jayant Sinha, met the representatives of crypto exchanges, block chain and Crypto Assets Council (BACC), among others, and arrived at a conclusion that cryptocurrencies should not be banned, but it should be regulated.

However, The RBI has repeatedly reiterated its strong views against cryptocurrencies saying they pose serious threats to the macroeconomic and financial stability of the country and also doubted the number of investors trading on them as well as their claimed market value.