In a big development, sources told Republic on Tuesday that a cryptocurrency bill will be introduced in the winter session of the Parliament.
The bill under the name of ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ is listed ‘To create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India’ sources further said, adding that the Bill will prohibit all private cryptocurrencies excluding a few, in order to leverage the underlying blockchain technology.
Govt to change tax laws in Budget to tax cryptocurrency gains
Earlier, there were reports that the government is mulling changes in the income tax laws to bring cryptocurrencies under the tax net, with some changes that could form part of the Budget next year.
Revenue Secretary Tarun Bajaj said that in terms of income tax, some people are already paying capital gains tax on the income from cryptocurrency, and in respect of Goods and Services Tax (GST) also the law is “very clear” that the rate would be applicable as those in case of other services.
“We will take a call. I understand that already people are paying taxes on it. Now that it has really grown a lot, we will see whether we can actually bring in some changes in law positions or not. But that would be a Budget activity. We are already nearing the Budget, we have to look at that point of time,” Bajaj told
The development comes on the backdrop of multiple meetings between the industry and the government to provide a framework for the use of cryptocurrency in India. Only last week, the Parliamentary Standing Committee on Finance held a meeting with experts on the matter ‘CryptoFinance: Opportunities and Challenges’ and summed up that cryptocurrency cannot be stopped but must be regulated.
PM Modi expresses concern over cryptocurrency
Delivering the keynote address at The Sydney Dialogue on Thursday, PM Modi shared his concerns about the use of cryptocurrency across the world. According to him, all democracies should join hands to ensure that the cryptocurrency is not misused.
Moreover, he pitched for joint collaboration to invest in research and development in future technology, develop a trusted manufacturing base and trusted supply chains, deepen intelligence and operational cooperation on cyber security and prevent manipulation of public opinions. The PM also stressed the need to create global data governance standards.
PM Modi remarked, “It should also recognise national rights and at the same time, promote trade, investment and larger public good. Take cryptocurrency or bitcoins for example. It is important that all democratic nations work together on this and ensure that this does not end up in wrong hands, which can spoil our youth.”