December 8, 2022

Union Budget 2022: No crypto Bill listed this budget Session – Times of India

The highly anticipated Cryptocurrency and Regulation of Official Digital Currency Bill did not find a place yet again in the tentative list of 15 proposed legislations that may come up before Parliament during the Budget Session, which began on Monday.
Fifteen new bills have been listed for introduction in the Budget session, including the Competition (Amendment) Bill, 2022, the Emigration Bill, 2022, and the Energy Conservation (Amendment) Bill, 2022, but the list made no mention of the Cryptocurrency Bill.
The government is reportedly also waiting for the Reserve Bank of India to first conduct a pilot launch of its own digital currency. The crypto assets in India are currently estimated at around Rs 45,000 crore with about 15 million investors
” Non introduction of crypto-currency bill in the current session is on expected lines given that the Government has not taken a final call on the legal sanity of crypto-currency. Having said this, the tax uncertainties around crypto transaction will remain cause for concern both for the Government and people transacting. One can understand why position in tax continues to remain uncertain given the indirect indication that there is some legal sanctity to crypto-currency amidst the lack of legal framework around it. A speedy resolution on this would go a long way,” said Ritesh Kumar, Partner, IndusLaw.
Debates around regulating cryptocurrency began as early as 2018 when the Reserve Bank of India imposed a ban on crypto transactions facilitated by other lenders. At the time, the RBI had said that the unregulated and untraceable nature of cryptocurrencies pose serious risks to the financial functioning of this country. Currently, there is no provision under the Income Tax Act for taxing cryptocurrencies. The most likely tax position is that income on transfer of cryptocurrencies should be taxed as capital gains unless a seller is a trader by occupation, which later should be taxed as business income.

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