TV Somanathan, Finance Secretary explains this point and said that people investing in crypto or bitcoin in the private crypto must clearly understand that it will never get authorization of the government as there is not any guarantee if the investment will get successful. The NFT, Bitcoin and Ethereum will never be the legal tender. He also added, digital currency will get backed by RBI that will never default. The statement also comes a day subsequent to Nirmala Sitharaman, the Finance Minister had announced almost 30 per cent of the tax on various virtual digital assets.
Question on legality of Bitcoin
Bitcoin, NFT and Ethereum will never be able to get the legal tender. The Crypto assets are mainly the assets where the value will be able to determine between different people. You may be able to buy gold, crypto and diamond, however that will also have not any kind of value authorization through the government.
Crypto and other Digital Currency!
Offering clarification on concerns over the digital currency and bitcoin, Somanathan mention that digital currency gets back through RBI money will about RBI but nature will get digital. Also, the Digital rupee which issued through RBI will become the legal tender. However, all are not the legal tender, that will never get the legal tender.
It was announce with the 30 per cent tax on the income from the virtual digital assets (Bitcoin). There has been some phenomenal rise where transactions and magnitude with the frequency of such transactions. It also made quite imperative to offer the particular tax regime.
She also clarified that there will be no deduction for any allowance and expenditure. It shall get permit though computing like income excepting cost of achievement.
