India’s finance minister, Nirmala Sitharaman, has revealed that government officials are constantly monitoring the crypto sector, India Today reported Monday.
Speaking at India Today Budget Roundtable 2022 on the “State of India’s Economy: The Final Word,” she was quoted as saying:
We have a team of people who are constantly monitoring, watching the crypto sector and listening to people from that area. They are giving me feedback.
In addition, the finance minister said that the Reserve Bank of India (RBI) is working on issuing India’s central bank digital currency (CBDC), the digital rupee. However, she clarified that crypto taxation will be implemented first.
During her budget speech last week, the finance minister proposed taxing income from cryptocurrency at 30% without allowing any deductions except the cost of acquisition.
Last week, Indian Central Board of Direct Taxes (CBDT) Chairman J. B. Mohapatra was quoted by the publication as saying:
The taxability of the cryptocurrency is certain for this financial year … Crypto investors should know that the transactions done before April 2022 will not be tax-free.
While some people see the finance minister’s crypto tax proposal as a step to legitimize the sector, many are concerned that it will stifle innovation. Over 70,000 Indians have now signed a petition on Change.org for the government to introduce more reasonable crypto tax policies.
The finance minister also said during her budget speech that the RBI will introduce its central bank digital currency (CBDC) in the next financial year beginning April 2022. Indian Prime Minister Narendra Modi said that the digital rupee will strengthen the digital economy and revolutionize fintech.
