Union Budget 2022: All Except RBI Currency Are Assets, Finance Minister To NDTV On 30% Tax
Union Budget 2022: Nirmala Sitharaman said digital assets transactions will be taxed at 30%
Finance Minister Nirmala Sitharaman has thrown some light into her Union Budget announcement to tax profits from digital assets transactions at 30 per cent. Digital assets, which includes the "crypto world", according to the Finance Minister, are not to be confused with digital currency, which only the central bank can issue.
Crypto watchers have pointed at policy uncertainty over taxing digital assets at a time when cryptocurrencies are not under any regulation.
"I don't wait till regulations come in place for taxing people who are making profits. Can I?" Ms Sitharaman told reporters at a media briefing after her Budget speech in parliament.
On a question by NDTV on the new tax, the Finance Minister said the government is only taxing profits made on digital assets and "not taxing currency that is yet to be issued."
"I said the Reserve Bank (of India) will be issuing a digital currency. A currency becomes, or, a currency is a currency only when it is issued by the central bank, even if it is crypto. Anything outside of that, even loosely all of it referred to as cryptocurrencies, they are not currencies," Ms Sitharaman said.
"Let's first understand we are not taxing currency that is yet to be issued. And that provision has been now made and the currency in the name of digital rupee will be issued. Exact name you will get a bit later, but the Reserve Bank is the one who is going to issue it. And what Reserve Bank issues is the digital currency. Everything outside of it in the name of digital whatever are assets being created by individuals," the Finance Minister said.
"And in transacting those assets if there are profits being made, we
Read more on ndtv.com
