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By Aditya Raghunath
Investing.com — A report in The Financial Occasions at this time mentioned that the federal government is contemplating defining cryptocurrencies within the new draft invoice that it’s arising with. Cryptocurrencies shall be based mostly on the expertise they use or their end-use case.
The report mentioned, “Cryptocurrencies shall be handled as an asset/commodity for all functions, together with taxation and as per consumer case — funds, funding or utility.”
The report mentioned that the federal government will seemingly not enable cryptocurrencies for use for funds and settlements, and that solely cryptocurrencies permitted by the federal government could be allowed to commerce in India.
The report quoted a supply saying, “The federal government in its draft invoice is working in the direction of defining cryptocurrency and its therapy in numerous use circumstances, in order that it may be handled appropriately within the books of accounts plus it needs to be taxed in the precise method. It isn’t seeking to enable funds and settlements via digital currencies.”
The rationale the federal government goes heavy on cryptocurrencies is to make it simpler to tax them. If an asset is just not outlined, taxing it poses a problem. Cryptocurrency traders and fans could be relived with this growth as a result of it’s a step down from the hardcore stance of not permitting it to exist in India.
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