From the announcement of the Reserve Bank of India’s (RBI) central bank digital currency to the proposal of taxing income from the sale of virtual digital assets at 30% and tax deduction at source (TDS) at 1%, the Centre made it clear in the Union Budget 2022 that it is set to heavily focus on digitisation in the finance space. While the cryptocurrency industry in India has construed these moves as major steps towards regulatory recognition of cryptocurrencies in India, the government has been quick to clarify that taxation and legality are two different realms.
Perspective
Tax Collector’s Crypto Conundrum
There needs to be a focused and consolidated dialogue between the government and the industry on these matters to ensure that there is clarity and a structured approach is devised to deal with cryptocurrencies, non-fungible tokens and the like
