Legality And Taxability Of Digital Currency In India

The Finance Minister of India in her Budget 2022 speech on 01.02.2022, announced a 30% tax on income from virtual digital assets and a TDS on payment made in relation to the transfer of virtual digital assets at 1% above a monetary threshold. While Indian crypto investors have welcomed the government's decision to tax profits from digital assets' transactions, even as the tax rate is a steep 30%, underscoring hopes the pending crypto bill will regulate the market rather than ban private coins completely. While the government and a few members of RBI's central board have sought a more nuanced view on digital assets, keeping in mind the technological developments, the RBI still favors a complete ban on crypto-currencies. It has made that explicit in repeated messages highlighting concerns relating to macroeconomic and financial stability from virtual currencies, the challenge of exchange management,