Budget session not likely to see crypto bill being presented

The much-awaited cryptocurrency bill, which had been scheduled for presentation during parliament's winter session last year, is unlikely to see the light of the day during the budget session as well which will start from January 31.

Per reports, the Centre is keen on more discussions with stakeholders to fine-tune policies around cryptocurrencies in the country. The government is also waiting for observations and technical insights from the upcoming pilot of the central bank's digital currency project expected to launch within the next few months.

The central bank has reiterated its concerns around private digital currencies "from a macroeconomic and financial stability standpoint".

Per ET, a senior official from the finance ministry stated that crypto is a "complex subject and will require more time", hence it will not be introduced in the budget session. Notably, the framework will require synchronisation with and amendments in various laws.

Reportedly, the Centre could consider levying TCS/TDS on sale and purchase of cryptocurrencies above a certain threshold.

Previously, the Centre had mulled substantially increasing the tax burden on cryptocurrency investors, putting them within an income slab of 35-42 percent, and bringing the market watchdog into the regulatory picture. A levy of one percent of GST on cryptocurrency exchanges was also being considered.

IndiaTech, an industry association representing consumer internet startups, had written to finance minister Nirmala Sitharaman, seeking clarity on crypto taxation in the budget, ET had reported.

In the letter, IndiaTech had appealed to the government to tweak tax laws to include crypto assets and sought clarity on the method of taxation and disclosures.