The right of the government to tax the profits made on crypto: Sitharaman

  • The decision on whether or not to ban crypto will be made after deliberation

Finance Minister Nirmala Sitharaman has once again clarified the government’s stance on cryptocurrency. The government has the right to tax the profits from cryptocurrency transactions and the decision on whether to ban them will be taken after deliberation.

Responding to a discussion on the general budget, he said that at this stage I do not want to recognize or ban crypto. When a decision is made by a solid deliberation, a decision on whether to recognize or ban cryptocurrency will be made based on that decision.

Talking about the profits from cryptocurrency transactions, he said that it is a different matter whether it is legal or illegal, but the government has the right to levy tax on the profits from the transaction. Only digital coins approved by the RBI will be recognized, while the government will levy 30 per cent tax on profits from any other type of digital currency.

The government managed to keep retail inflation under control at 6.2%

Despite a sharp fall of Rs 9.57 lakh crore in the country’s GDP in the financial year 2020-21, the government has managed to control retail inflation to 6.2 per cent, the finance minister said. The general budget for the year 2022-23 is beneficial for stabilizing the economy. The main objective of the budget is stable and sustainable growth in the economy, he said.