In Brief:
- RBI and Government Financial Body might impose Tax over a Crypto assets
- The move will not categorize cryptocurrency as a valid asset class.
- RBI is planning to launch digital rupee trials by the end of this year.
The tax department of India might impose a tax on Cryptocurrency trades and ecosystems in the next few days or months, according to The Economic Times.
The tax department of india favours taxing cryptocurrency exchanges and trades in the country. However, the move will not categorize cryptocurrency as a valid asset class.
Cryptocurrencies are not mentioned in the Indian Tax Act and no rules are made for it to be regulated. Till now, the Reserve Bank of India (RBI) has not accepted bitcoin or any other cryptocurrencies as a legal tender in India.
According to Economic Times, the government is feeling that any activity that generates income should be taxed. Though the upcoming legislative proposal will give clarity in the matter.
The Indian government first announced the blanket ban on cryptocurrencies in March. However, recent moves from the government show hope for crypto investors and traders.
Last week, Former RBI deputy governor R Gandhi had given thoughts over crypto assets. He suggested regulating crypto as a separate asset class with a view of enabling governments around the world to counter illegal activities connected with virtual currency.
Moreover, RBI is planning to launch its own digital currency by the end of this year. Albeit, still it is not decided whether to go for distributed ledger technology or centralized ledger if it goes ahead with the plan of launching its digital currency.
