Question 1

What did India's tax department say about crypto?

Accepted Answer

The Income Tax Department told the government that transactions on offshore exchanges are difficult to monitor, raising tax-evasion risk, and noted that in the year ending March 2023 fewer than a quarter of the 645,000 people who traded crypto declared those gains.

Question 2

Why does the Reserve Bank of India oppose crypto?

Accepted Answer

The RBI favors a policy "leaning towards prohibition," arguing that banks' exposure to crypto and privately issued stablecoins could spread risk through the financial system, erode seigniorage, and threaten India's monetary sovereignty.

Question 3

Is cryptocurrency legal in India?

Accepted Answer

Crypto sits in a legal grey area: the Supreme Court struck down the RBI's 2018 banking ban in 2020, a 2021 bill to ban private cryptocurrencies was never introduced, and the government taxes gains at 30% plus a 1% TDS without recognizing digital assets as a formal asset class.

ICAI

India’s tax office backs RBI’s lean toward crypto prohibition

One sharp brief.
Every day.

ICAI

India’s tax office backs RBI’s lean toward crypto prohibition

One sharp brief.Every day.

One sharp brief.
Every day.