India officials are currently discussing the possibility of providing an “exit window” that would allow crypto holders to get rid of their assets before the possible ban on all “private” digital currencies, The Indian Express reported today.
“The government is expected to give existing crypto holders an exit window in the event of a total ban,” a government official said.
According to the publication, the possibility of such a grace period, which could possibly be between three and six months, was discussed today at an inter-ministerial meeting.
Drug crypto ban
As CryptoSlate reported, the Indian government proposed a new law that could enforce a general ban on “private” cryptocurrencies such as Bitcoin and Ethereum – but not for the Reserve Bank of India’s digital currency, which is currently in the works. According to the proposal, it would be illegal to own, spend, mine, trade and transfer digital assets.
However, it is still unclear how strict new laws will ultimately be, as the bill entitled “The Cryptocurrency and Regulating the Official Digital Currencies Bill, 2021” has not yet been finalized. In addition, Indian Finance Minister Nirmala Sitharaman previously stated that there is still a “small window of opportunity” for Bitcoin as the government continues to “experiment” with crypto.
“We have given extensive thought to this topic. There is the report of the panel of experts, followed by inter-ministerial discussions, meetings of the cabinet secretary and submissions from various stakeholders to the government on the matter. This calculation will definitely take all of that into account. The government will propose a bill, ”a senior government official told The Indian Express.
Taxes still apply
Despite the lack of clear digital asset laws, Indian crypto owners are expected to properly pay taxes on profits from trading, Treasury Secretary Anurag Singh Thakur said in late March.
“Regardless of the type of business, total income for taxation includes all income from any source. Profits from cryptocurrency / asset transfers are taxable under an income header,” Thakur said, adding, “Offer if a service is not specifically exempted is, it is taxable according to GST, and no service in connection with the exchange of cryptocurrencies has been exempted. “
According to today’s report, the Indian government may even require crypto enthusiasts to submit their inventory and transaction declarations retrospectively – even after the “exit window” has closed.
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