For some time, investors and stakeholders in India have been debating the cryptocurrency tax and a planned regulation bill.
While Finance Minister Nirmala Sitharaman clarified the taxation of cryptocurrencies, the government has yet to introduce legislation to regulate them.
According to a PTI report, the government proposed tightening the taxation on cryptocurrencies by prohibiting the offset of any losses with gains from other virtual digital assets.
Finance Bill 2022
The ministry proposes to delete the word ‘other’ from the part pertaining to the set off of losses from gains in virtual digital assets, according to modifications to the Finance Bill, 2022, distributed among Lok Sabha members, according to the PTI report.
Virtual Digital Assets
This means that a loss resulting from the transfer of virtual digital assets (VDA) cannot be offset against a gain resulting from the transfer of another VDA.
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The VDAs will comprise popular cryptocurrencies as well as non-fungible tokens (NFTs), which have been popular in recent years.
According to PTI, a VDA might be a code, number, or token that can be transferred, stored, or exchanged electronically, as per the Finance Bill 2022.
Despite rising trade volumes, the government remains sceptical of the industry, fearing that digital currencies might be used for money laundering, terrorist financing, and price volatility.
(With inputs from agencies)
For some time, investors and stakeholders in India have been debating the cryptocurrency tax and a planned regulation bill. While Finance Minister Nirmala Sitharaman clarified the taxation of cryptocurrencies, the government has yet to introduce legislation to regulate them. According to a PTI report, the government proposed tightening the taxation on cryptocurrencies by prohibiting the offset of any losses with gains from other virtual digital assets. Finance Bill 2022 The ministry proposes to delete the word ‘other’ from the part pertaining to the set off of losses from gains in virtual digital assets, according to modifications to the Finance Bill, 2022, distributed among Lok Sabha members, according to the PTI report. Virtual Digital Assets This means that a loss resulting from the transfer of virtual digital assets (VDA) cannot be offset against a gain resulting from the transfer of another VDA. Watch | Bitcoin surges after Biden signs executive order on digital assets The VDAs will comprise popular cryptocurrencies as well as non-fungible tokens (NFTs), which have been popular in recent years. According to PTI, a VDA might be a code, number, or token that can be transferred, stored, or exchanged electronically, as per the Finance Bill 2022. Despite rising trade volumes, the government remains sceptical of the industry, fearing that digital currencies might be used for money laundering, terrorist financing, and price volatility. (With inputs from agencies)