The government may change the legislation to impose a tax on cryptocurrency revenues, and guidelines may be included in the budget next year | Cryptocurrency

The government may change the legislation to impose a tax on cryptocurrency revenues, and guidelines may be included in the budget next year.

According to Revenue Secretary Tarun Bajaj, some persons are already paying capital gains tax on cryptocurrency income, and the legislation regarding the Goods and Services Tax is extremely clear (GST)

New Delhi, PTI: The government is contemplating changing the tax code to include profits from cryptocurrency investments. Many relevant laws may have been included in the budget for the next year. According to a high authority, this information is correct. “Several individuals are already paying capital gains tax on income from cryptocurrencies under income tax,” claimed Revenue Secretary Tarun Bajaj, “as well as the statute is quite clear that the very same amount will apply in the case of other services under GST.”

According to Bajaj’s response, “People are already paying tax on it, as far as I am aware. Once it has risen significantly, we will see if we can actually affect legal change. It’s possible. However, this will be accomplished within the constraints of the budget. It’s also possible that TCS (Tax Collected at Source) will be implemented for cryptocurrency trade. You must pay tax if you make money; we have already paid certain taxes. Many people have handled it like an asset and paid capital gains taxes on it.”

“These things would already be accessible in other businesses,” Bajaj said when asked if bitcoin traders should be categorized as facilitators, brokerages, and trading platforms and taxed under GST. They will be subject to the tax rate that has been imposed upon them. Because GST statutes are clear: if such a stockbroker assists clients and charges a brokerage fee, GST would be applied.”

Even during the winter session of Parliament, which starts on November 29, the government is expected to present a measure on cryptocurrencies. It is stated that such money is being utilized to entice investors with false claims. In recent months, there is an increase in the amount of advertising starring celebrities offering quick and huge returns on cryptocurrency investments. Nowadays, there have been no regulations or limitations on the usage of cryptocurrencies. In such a meeting with senior officials this week on cryptocurrencies, Prime Minister Narendra Modi suggested that more regulatory steps may be used to address the issue.

While maintaining its opposition towards cryptocurrencies, the RBI stated that they represent a severe danger to the country’s macroeconomic and financial stability, as well as the number of investors trading on them and their purported market value.

Credit – Komal Sharma

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