Budget 2022 for Cryptocurrency: FM Nirmala Sitharaman says Taxing cryptos does not mean it has been legalized

In a recent statement, Union Finance Minister Nirmala Sitharaman clarified that the government’s imposition of taxes on digital assets should not be taken as a sign that cryptocurrencies will soon be legalized. She said that while the government is still exploring on it, so it has not yet come to a final decision on the matter.

Replying to the general discussion on Union Budget 2022-23 in Rajya Sabha on friday, the Finance Minister said, “I am not going to legalize it or ban it at this stage. Banning or not banning will come subsequently when consultations give me input.”

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Let us tell you, The Finance Minister of India, Nirmala Sitharaman had announced a new tax rule on virtual digital assets in Union Budget 2022-23 on Feb 1. She imposed 30% tax on on income from the transfer of any virtual digital assets.

She also imposed 1% TDS on payments made in relation to the transfer of virtual digital assets with the aim of capturing transaction details of digital currency.

(With Agency inputs)