The Cryptocurrency Bill is unlikely to be introduced in the Budget Session of Parliament. After the introduction of this bill, it will be clear what will be the rules related to cryptocurrency in the country. The picture regarding the regulations related to cryptocurrencies is not clear yet. The Reserve Bank of India (RBI) and the government are not very positive about investing in crypto. Both consider investing in it as risky. They believe that investors’ money can be sunk in cryptocurrencies. This is the reason why the government has decided to make comprehensive rules regarding cryptocurrencies. For this, she will present the bill in Parliament.
The government is believed to want further discussion on its policy on cryptocurrencies. The government is waiting for the observations and technical aspects related to the digital currency project of RBI. It is expected that RBI will launch its digital currency in the next few months. The central bank has expressed its concern regarding the private digital currency. It believes that this can threaten the economy and financial stability.
According to the English business newspaper ET, a senior Finance Ministry official has said that crypto is a complex issue. So the government needs more time to formulate the policy. Hence the crypto bill is not expected to appear in the budget session. Cryptocurrencies will require amendments to several laws. It is believed that the government may impose TCS / TDS on the purchase and sale of cryptocurrencies above a limit.
Earlier, the government had thought of significantly increasing the tax on the investors of cryptocurrencies. The plan was to bring them in the 35-42 per cent income slab. One per cent GST was also thought to be imposed on cryptocurrency exchanges. ET has reported that IndiaTech, which represents consumer internet startups, had written to Finance Minister Nirmala Sitharaman seeking a clear picture of the tax on crypto. He requested the Finance Minister to bring crypto assets under him by changing the tax rules. Along with this, there was a demand to clarify the provisions of tax regarding crypto.
The desire to invest in cryptocurrencies has increased all over the world. The reason for this is the return it gives. Several cryptocurrencies, including bitcoin, have made their investors rich over the years. This is the reason why a large number of people want to invest money in it. India is one of the countries where the number of crypto investors is very high.
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