From Hospital Bill To Flight Miles: Government Mulling Over Excluding Some Transactions From Crypto Tax

Crypto Tax | New Delhi: Some transactions may be exempted from cryptocurrency tax soon. According to a report by Economic Times, the finance ministry has been mulling over exempting some transactions from the new crypto tax. These include payment of hospital bills using blockchain technology, reward points on banks’ digital cards and flight miles.Also Read – RBI Grade B Officers Admit Card 2022 Released; Here’s How to Download Call Letter

According to the latest crypto tax rules announced by the government in Budget 2022, 30 per cent tax on income from the transfer of digital tokens and 1 per cent TDS on crypto transactions is mandatory. This has become applicable from April 1, 2022. Also Read – India Emerges As Fastest-Growing Economy With GDP Growth Rate of 8.7 Per Cent

What is government’s stance on crypto tax?

The government has reiterated that they will not completely undo the crypto tax law. Also, the clarity on the legality of digital tokens has also not been provided by the government. The TDS of 1 per cent, has to be paid at all costs, even if the cryptocurrency is received as a gift. Also Read – Investors May Soon Get Clarification On Legality Of Cryptocurrency | Details Here

The RBI has been opposing making these cryptocurrencies legal. According to the bank, they have an adverse impact on India’s financial stability. RBI Governor had reportedly stated, “Cryptocurrencies have no underlying value, not even a tulip.”

However, if the reports are true and some transactions are removed from the ambit of crypto tax, it might bring some relief to the investors.

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