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Budget News 2022      1. Taxing income doesn't give private cryptos legitimacy: FM Sitharaman   At the customary post-Budget media interactions, Finance Minister Nirmala Sitharaman and her topmost bureaucrats touched upon a number of issues. The minister said the government taxing income from digital virtual assets did not give them legitimacy and that issue was being dealt separately in the planned cryptocurrency Bill. She also expressed confidence that the Budget targets were achievable. Excerpts:   On cryptocurrencies The RBI will be issuing a digital currency. A currency can be issued only by the central bank even if it is a cryptocurrency. Anything outside that though we refer to them as currencies, they are not so. Buying and selling is happening and profits are being made, and nothing stops me from taxing them. Taxing does not confer on them legitimacy. We are not taxing a currency (digital rupee) that is yet to be issued. Everything outside this is an asset created by indiv

  BUDGET SPEECH 2022 THE FINANCE BILL, 2022 MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL, 2022

  Mumbai: The Securities and Exchange Board of India (Sebi) will now send show cause notices, summons and orders to securities law offenders via instant messaging platforms such as WhatsApp, Telegram and Signal, a move that will make the processes speedier and efficient.This will be in addition to the normal mode of communication including electronic mail, registered post, courier and fax.   "The law and regulation concerning the securities market and the regulatory framework continues to see dynamic changes from time to time," said Zerick Dastur, founder of Zerick Dastur, advocates and solicitors. "In an effort to smoothen the system of adjudication and issuance of timely processes, the manner of service of notices and orders has also undergone changes to meet with the needs of time."   A bench of Chief Justice S A Bobde, and Justices R S Reddy and A S Bopanna agreed with the suggestions of attorney general K K Venugopal and solicitor general Tushar Mehta that noti

  Even as the indirect tax department initiated investigations against several crypto exchanges for escaping Good and Services Tax (GST) liability, it may have also set a precedent around the categorisation of crypto assets for taxation.Legal experts have long debated on the categorization - and tax treatment - of cryptocurrencies. They are yet to converge on whether a cryptocurrency is indeed a currency, a commodity, a service, or something else.   The Directorate General of GST Intelligence (DGGI) conducted searches and raids on several crypto exchanges and asked them to pay GST on their transaction fees or margins.The tax department's stand, say tax experts, could mean that at least part of what exchanges provide can be categorised as services. "GST on cryptocurrency has been a subject matter of dispute from the taxability and valuation perspective," said Abhishek A Rastogi, Partner at Khaitan NSE 0.53 % & Co. "Transaction fees are always paid by senders; thes

  Setting the ball rolling on digital payments through the offline mode, the Reserve Bank of India (RBI) on Monday released a framework for such payments, wherein it stated that the upper limit of an offline payment transaction will be Rs 200, the overall limit Rs 2,000 on a payment instrument at any point in time until the balance in the account is replenished.Offline payments can be made using any channel or instrument like cards, wallets, and mobile devices, the RBI had stated.   According to the RBI, an offline payment means a transaction not requiring internet or telecommunication (telecom) connectivity to take effect.“Offline transactions are expected to give digital transactions a push in areas with poor or weak internet or telecom connectivity, particularly in semi-urban and rural areas,” the RBI said.   In October last year, the central bank had indicated that it would come up with a framework for carrying out small-value digital payments in the offline mode across the country

  The CAG has pulled up the union government for adopting an erroneous process of devolution of IGST to states and short-transfer of cesses to reserve funds, which resulted in under-reporting of deficit figures for the 2017-18 and 2018-19 fiscals.The Integrated Goods and Services Tax (IGST), which is levied on inter-state sale of goods and services, is shared between the Centre and states in the 50:50 ratio.In its report on the union government accounts tabled in Parliament, the Comptroller and Auditor General of India (CAG) found that a sum of Rs 13,944 crore was left unapportioned and retained in the Consolidated Fund of India (CFI) in 2018-19, even though the amended IGST Act now provides for a process for ad-hoc apportionment of IGST.   "Audit of Union Accounts for 2017-18 and 2018-19 disclosed misclassification of revenue expenditure, adoption of an erroneous process of devolution/apportionment of IGST to states, short transfer of cesses to reserve funds and non-adjustment of

  In a relief to small-size firms, the Reserve Bank of India (RBI) on Friday relaxed rules for opening current accounts with the banking system’s exposure of less than Rs 5 crore. The RBI asked banks to take an undertaking from borrowers that they will inform lenders when the credit facilities availed reaches Rs 5 crore or more.   The rules have been tweaked based on feedback received from Indian Banks’ Association (IBA) and other stakeholders, the RBI said. Borrowers with banking system’s exposure of Rs 5 crore or more can maintain current accounts with any one of the banks with which it has CC/OD facility. Such banks must have at least 10 per cent of the exposure of the banking system to that borrower.Further, other lending banks may open only collection accounts, the RBI said. This can be done on condition that funds deposited in such accounts are remitted within two working days of receiving these to the CC/OD account.   The bank having the highest exposure may open current account