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No rationale for lowering 30% tax on crypto profits: Revenue Secretary Tarun Bajaj

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3 years ago

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No rationale for lowering 30% tax on crypto profits: Revenue Secretary Tarun Bajaj

The government is willing to address the real concerns and reservations of crypto trading participants arising from the new tax regime for virtual digital assets, but firmly believes that there is no economic justification for lowering the proposed 30% tax on profits from crypto assets’ trades.

While a review of the 1% TDS (Tax at Source) rate on all virtual asset transactions may be considered, senior Treasury officials also noted that even investments in stock exchange stocks and debt instruments that create value for the economy , involving the collection of securities transaction taxes.

Responding to industry concerns about the tax rate, Inland Revenue Commissioner Tarun Bajaj strongly supports a 30 per cent rate, saying there is no reason to tax these assets less than anyone else pays on their income.

“The super rich pay 42 percent in taxes, including surcharges,” Bajaj told The Hindu. “It’s not that some economic value is created or that the country’s GDP is growing (from cryptocurrency trading). If you’re speculating and you don’t think it’s viable, stop doing it,” he said, adding that the government doesn’t need to encourage Such a deal, even though it might revisit the 1% TDS rate.

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“We’re working on the little details,” Mr Bajay said, noting that the tax authorities are aware that gathering information on transactions will be a challenge and that the TDS tax will have to be levied.

“That’s why we also say that offsets are not allowed, otherwise someone could make a capital gain on equity and show a loss in your personal wallet-to-wallet transaction,” he noted. “The TDS will be cut, and if the exchange is not done, the regulations will apply to them. So now the responsibility and obligation falls on them.”

“If there are any reservations that we agree with that the legislation needs to be straightened out, then of course, we will address that,” said J.B. Mohapatra, chairman of the Central Committee on Direct Taxation. “But the fact remains that the digital virtual asset tax was introduced to help the larger ecosystem also not be affected by the so-called opacity of that part,” he stressed.

“You shouldn’t get any information about the regulatory regime from this tax. Until the regulatory regime is in place, from a tax standpoint, we’re not concerned about whether you can do derivatives or day trades on this front,” the tax commissioner said.

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Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

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21 hours ago

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November 21, 2024

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Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

Following US SEC charges of bribery against Gautam Adani, opposition parties criticise PM Narendra Modi and call for a JPC investigation.

As billionaire Gautam Adani faces charges in the US for alleged bribery and fraud, the Opposition on Thursday intensified its attack on the Centre over its alleged links with the Adani Group.

Gautam Adani has been charged in the US with allegedly paying $250 million in bribes to Indian officials between 2020 and 2024 to secure favourable terms for solar energy contracts. The scheme, prosecutors said, could have earned Adani’s group over $25 billion in profits.

Congress demands JPC probe

Reacting to the charges, the Congress called for a Joint Parliamentary Committee (JPC) probe into alleged scams involving Adani’s conglomerate. The party also demanded the appointment of a “new and credible” Sebi chief to investigate Adani’s financial dealings and compliance with securities laws.

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ALSO READ- At 65.2%, Maharashtra records highest voter turnout since 1995 assembly election

Congress leader Jairam Ramesh said the US Securities and Exchange Commission’s (SEC) actions highlight the failure of Indian institutions to investigate the group. “The indictment vindicates Congress’s demand since January 2023 for a JPC into the Modani scams,” Ramesh wrote on X.

He accused Prime Minister Narendra Modi of shielding Adani and claimed Congress’s “Hum Adani Ke Hain Kaun” (HAHK) series had exposed the businessman’s alleged fraud and his ties with the PM.

The fact that it has taken a foreign jurisdiction to properly investigate Adani only shows how Indian institutions have been captured by the BJP, and how decades of institutional development have been undone by greedy and power hungry leaders, the Congress leader said in another post.

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“All of this is consistent with a long record of fraud and criminality carried out with impunity with the obvious protection of the Prime Minister,” Ramesh charged.

Other Oppn leaders join attack

Other opposition leaders joined the attack. Trinamool Congress MP Saket Gokhale questioned the BJP’s involvement in Adani’s dealings and demanded an independent judicial probe.

Aam Aadmi Party leader Sanjay Singh accused PM Modi of allowing Adani to tarnish India’s global reputation.

ALSO READ- Adani Group shares plunge after US SEC charges, Adani Green down 16%

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Adani stocks latest updates

The allegations rattled markets, with Adani Group stocks plunging. Adani Enterprises fell 20 per cent in pre-open trade, while shares of Adani Ports, Adani Green, Adani Power, and others dropped between 7 per cent and 18 per cent.

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