In the last few years, the trend of cryptocurrency, also known as crypto in short form, is increasing rapidly around the world. There is a different enthusiasm about it, especially among the youth. Young people are increasingly getting attracted to crypto.
People all over the world must have heard about different cryptos such as different types of cryptocurrencies like bitcoin , ethereum, dogecoin etc. But most of the people have less knowledge about crypto. Different rules and regulations have been made regarding this crypto in different countries. Today we are going to tell you what are the rules and regulations regarding crypto in India.
Crypto legal or illegal in India?
Cryptocurrencies are not regulated by any central authority as a payment medium in India. There are no set rules and regulations or any guidelines to settle disputes while dealing with cryptocurrencies. Therefore, trading in cryptocurrencies is done at the investors’ risk.
Based on various key statements made by various government spokespersons, including Reserve Bank of India Governor Shaktikanta Das as well as the country’s Finance Minister Nirmala Sitharaman, it can be concluded that cryptocurrency is illegal, but there is no definite ban on it in India . Not there.
Cryptos are unregulated in India, but as per the Union Budget 2022, the Indian government announced 30 percent tax on profits from cryptocurrencies and 1 percent tax deducted at source.
Law & Order
There are no official rules and regulations regarding crypto in the country. The finance minister in his last budget only talked about tax on crypto, so there is more confusion about crypto in India. Here’s what the Finance Minister said about crypto in his budget speech:
- Cryptocurrency investors are required to report calculated profits and losses as part of their income.
- A 30 percent tax will be levied on earnings from transfer of digital assets, including cryptocurrencies, NFTs, etc.
- Only the cost of acquisition and no deduction shall be allowed when reporting earnings from transfer of virtual assets.
- There is a 1 per cent deduction of Tax Deduction at Source ( TDS ) on the buyer’s payment if this limit is crossed.
- If cryptocurrency is received as a gift or transferred, it will be subject to tax at the end of the gift.
- If you incur any loss from virtual asset investments, it cannot be set off against other income.
Will cryptocurrency be banned in India?
Finance Minister Nirmala Sitharaman is trying to create a regulatory system regarding crypto with G-20 countries. If everything goes well, soon the G-20 countries can take a decision regarding crypto.
Recently the Government of India had put some processes related to crypto trading under the Money Laundering Act. Anyway, after the collapse of FTX, governments all over the world have started strictly monitoring the exchanges that regulate cryptocurrencies.
RBI’s move to rule crypto
In December last year, the Reserve Bank of India launched the country’s first digital currency e-Rupee ( e-RUPI ). The Digital Rupee or eINR or E-Rupee is a tokenized digital version of the Indian Rupee, issued by the Reserve Bank of India as a central bank digital currency.
