Cryptocurrencies and non-fungible tokens (NFTs) like Bitcoin and Ethereum will never get legal recognition in India. Finance Secretary TV Somanathan said these things on Wednesday, February 2. Somanathan said that the prices of crypto assets are decided privately. In such a situation, the Government of India will not have any authority on them.
The Finance Secretary said, “Bitcoin, Ethereum or NFT will never be legal tender in India. Crypto assets are assets whose price is fixed between two people. You can buy gold, diamond, crypto, but it has the government. There will be no price authorization by
“People investing in private crypto should understand that it does not have government authorization. There is no guarantee that your investment will be successful or not, losses may occur and the government is not responsible for this,” he said.
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‘Crypto is a kind of betting’
Finance Secretary TV Somanathan said on tax on crypto, “Crypto is a speculative transaction, so we are taxing it at 30%. No one knows the real value of bitcoin or ethereum. Their rate fluctuates daily. Now those earning through crypto will have to pay 30%. This is the new policy of the government.”
He said, “It is not just for crypto, it is for all speculative income. For example, if I take the earnings from a horse race, then that too is taxed at 30%. Any speculative transaction But there is already a 30% tax. That’s why we have decided to tax cryptocurrencies at the same rate.”
‘Tax on everything except agriculture’
Regarding the tax policy of the government, Somnath said, “The policy of the government is that income from all sources except agriculture is taxable. At present, we do not have clarity on cryptocurrencies. Many used to show capital gains as income. Many did not even declare their crypto assets. However, now it has been decided to tax all virtual assets at a uniform rate and that tax rate is 30 %.”
‘RBI’s digital currency will be legal tender’
Somanathan said, “Digital Rupee to be issued in the next financial year will get RBI support which will never default. Money will be RBI’s but digital in nature. Digital Rupee issued by RBI will be legal tender. Rest all legal tenders.” No, it will never become a legal tender.
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