India Doesn't Collect Data Nor Regulate Crypto Industry: FM
The finance minister also informed the House that transactions worth Rs 888.82 crore were identified during search and seizure operations as undisclosed income from VDA. Although crypto currency is not considered legal tender in India, it is allowed to hold, purchase, and sell as VDAs within limits
New Delhi: Union finance minister Nirmala Sitharaman on Monday said that India does not collect data nor regulate the crypto industry that is ‘inherently borderless’ in nature. The minister’s statement comes in line with the Central Bank’s view on crypto trade that containing the risks of crypto currencies through regulation would be difficult.
“Any regulatory framework for crypto assets can be effective only with significant international collaboration. The government is strengthening the monitoring and investigation of virtual digital assets or VDA-related transactions, signally that crypto-transactions are being tracked for criminal activities even though the government has shied away from complete regulation,” Sitharaman said while speaking at the Lok Sabha.
The finance minister also informed the House that transactions worth Rs 888.82 crore were identified during search and seizure operations as undisclosed income from VDA. Although crypto currency is not considered legal tender in India, it is allowed to hold, purchase, and sell as VDAs within limits.
At present, gains made from crypto trading are also taxed a flat 30 per cent, along with an additional 4 per cent cess. There's also a 1 percent TDS on crypto transactions exceeding Rs 10,000 in a year, or Rs 50,000 annually for specified individuals.
Crypto-related cases were attached under prevention of money laundering Act (PMLA) with proceeds worth Rs 4189.89 crore attached or seized by the enforce directorate (ED) under the finance ministry. It had also arrested 29 people, including one declared fugitive economic offender, and filed 22 prosecution complaints.
Meanwhile, Parliament was informed on Monday that the ED has attached proceeds of crime worth Rs 4,189.89 crore in crypto-related cases under the anti-money laundering law and declared one accused as a fugitive economic offender.
“Besides, the Central Board of Direct Taxes (CBDT) has also detected undisclosed income of Rs 888.82 crore from virtual digital assets (VDA) transactions during search and seizure operations,” the House was informed.
On a query, minister of state for finance Pankaj Chaudhary also said in a written reply to the Lok Sabha that the CBDT has sent 44,057 communications to taxpayers who invested or traded in VDAs but did not report these in schedule VDA of their ITRs. The government has also brought VDAs under the Prevention of Money Laundering (PMLA).
“The ED has investigated several crypto-related cases under PMLA, attaching/seizing/freezing proceeds of crime worth Rs 4,189.89 crore, arresting 29 persons, and filing 22 prosecution complaints. One accused has been declared a Fugitive Economic Offender,” Chaudhary said.
