Crypto is not a legal asset, says Indian finance minister

The finance minister warned citizens against their misconception that India recognizes crypto as a legal asset. 

In the present time, crypto is under gray regions and people are still doing crypto trading under the absence of rules. On 1 February, India’s budget session announced clarity on the crypto tax with a total of 30% on capital gain and also clearly stated that the same rules will apply to the crypto gifts like NFTs. 

After the announcement of crypto tax rules, many crypto supporters started to say that crypto is now legal in India, however, it was a historical decision and also a clear indication that India is going to bring a framework in the future. But these statements of social media forced the Indian finance minister Nirmala Sitharaman to pass a clear statement so that people should remain under the clarity zone. 

In the media presentation, Hon’ble Minister said: 

“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,” Sitharaman said

No way for Indian crypto-traders

As per the new proposed rules, crypto traders needed to pay separately for every crypto asset’s profit. So no one crypto trader can claim that he is in net loss or profit. Traders will be required to file the tax report individually on all assets.

Many Chartered Accountant experts claimed that there are many things in this crypto tax provisions of India, which are forbidden. And there is a necessity to provide all the details and also the government needs to inspect all the negative and positive points on this tax rule because these rules are directly not applicable.

Experts also noted that if the government will not provide mandatory clarity on this bill then in that situation it will invite people to trick the government rules to avoid the high tax charges.

Read also: UK tax agency new rules on Defi lending and staking