Cryptocurrency that the regulations regarding in india in the budget presented yesterday by Finance Minister Nirmala Sitharaman cryptocurrency It has been announced that 30% tax will be charged on transactions.
The tax obligation on crypto money transactions was interpreted as an indication that cryptocurrencies will not be banned in the country.
“Cryptocurrencies are in the Gray Area”
Reminding that cryptocurrencies are not considered illegal in India but can be used within the framework of the determined regulations, finance secretary TV Somanathan said in an interview that cryptocurrencies remain in the “grey area”.
Somanathan stated that the taxation for cryptocurrency transactions and payments will be similar to the taxation regime that exists in the country for earnings from horse racing, betting and other speculative transactions.
Stating that the regulations regarding cryptocurrencies in the country still remain unclear, Somanathan stated that the focus is currently on taxation and said:
“Crypto-assets are currently neither illegal nor encouraged. So they’re kind of in the gray area. They are not illegal. I mean it is not illegal to buy or sell crypto assets in India.
However, crypto transactions are taxed at the same rate as speculative transactions, not at the same rate as financial market transactions due to their volatile nature.”
Finance director Somanathan also stated that they will review international cryptocurrency regulations before they are published in India.