Bitcoin Legal Or Illegal In India? SC Asks Govt To Clear Stand On Cryptocurrencies

The Supreme Court reportedly urged Centre to clear stand on the legality of Bitcoin use in India.

New Delhi: The Supreme Court reportedly urged Centre to clear its stand on the legality of Bitcoin use in India. The apex court had asked the Narendra Modi-led government to clear its stand on the future of cryptocurrencies in India, according to a report by News 18.

Earlier, Finance Minister Nirmala Sitharaman said the final decision on “banning or not banning cryptocurrencies” will be taken after due consultations. “Banning or not banning cryptocurrencies will come subsequently after consultations. Not doing anything to legalise or ban cryptocurrencies (Whether it is) legitimate or illegitimate, it is a different question,” Sitharaman said while responding to a Budget debate in Rajya Sabha.

Clarifying on the legalities of cryptocurrencies in the country, Sitharaman, said: “I will tax because it is a sovereign right to tax”. The minister was responding to the questions raised by Congress member Chhaya Verma on cryptocurrency. Verma had asked about the legitimacy of taxing cryptocurrency.

In her Budget speech on February 1, Sitharaman had said that only RBI-issued ‘Digital Rupee’ will be recognised as currency, and the government will levy a 30 per cent tax on gains made from any other private digital assets from April 1.

The Budget 2022-23 has proposed a one per cent TDS on payments towards virtual currencies beyond Rs 10,000 in a year and taxation of such gifts in the hands of the recipient. The threshold limit for TDS would be Rs 50,000 a year for specified persons, which include individuals/HUFs who are required to get their accounts audited under the I-T Act.

Also, no deduction in respect of any expenditure or allowance shall be allowed while computing income from transactions in such assets. It has also specified that losses from the transfer of virtual digital assets will not be allowed to be set off against any other income.