The finance ministry is planning to release a statement in June stating that some transactions would be exempt from the crypto tax. The government has been considering whether or not to exempt representations for exemptions received.
Exemptions might include hospitals that use blockchain technology, reward points on bank digital cards, and flying miles.
The government has clearly rejected the proposals stated a few weeks ago to eliminate 1% TDS on crypto transactions and reduce the 30% tax band on crypto revenue.
Under Finance Act 2022, the finance ministry imposed a 30% tax band on crypto transactions, as well as a 1% TDS on digital-asset transfers.
The TDS, which is limited to Rs 50,000, must be paid either way of profits or losses earned during crypto transactions, making it important to mention in yearly income tax returns.
According to the new rules, cryptocurrency acquired as a gift would be taxed just like any other asset. This choice may be influenced by the rising habit of giving digital assets as gifts on many momentous occasions.
However, the issue of legalising cryptocurrency in India is still being discussed. Because of the negative influence on India’s financial stability, the Reserve Bank of India has been opposed to legalising crypto currencies in the nation.
“Cryptocurrencies have no underlying (value), not even a tulip,” stated RBI Governor Shaktikanta Das.
