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Arabian Post
a day ago
- Business
- Arabian Post
India Charts New Course on Crypto, Tightens Tax Norms, and Eyes AI for Compliance
India is poised to release a comprehensive discussion paper on cryptocurrency regulation in June 2025, marking a significant shift in its approach to digital assets. This initiative aims to establish a clear policy framework, drawing from international standards set by the International Monetary Fund and the Financial Stability Board . The move comes amid growing global acceptance of cryptocurrencies and domestic pressures, including a nudge from the Supreme Court, to clarify India's stance on digital assets. Currently, India's cryptocurrency landscape is characterized by a 30% tax on gains and a 1% transaction levy, without formal recognition of crypto assets. These stringent tax measures have led to over 90% of Indian crypto trading shifting offshore, as reported by industry sources. The forthcoming discussion paper is expected to address these issues and invite public feedback, potentially paving the way for a more structured and innovation-friendly crypto ecosystem in the country. Despite the government's move towards regulation, the Reserve Bank of India maintains a cautious stance on cryptocurrencies. RBI Governor Sanjay Malhotra reiterated concerns about the potential risks to financial stability and monetary policy, emphasizing that there has been no change in the central bank's position. The RBI continues to promote its own digital currency, the e₹, as a safer alternative to private digital assets. ADVERTISEMENT In parallel with developments in the crypto sector, the Indian government has introduced stricter requirements for claiming tax deductions in the assessment year 2025-26. Taxpayers are now mandated to provide detailed documentation when filing their Income Tax Returns , particularly under the old income tax regime. For instance, claiming House Rent Allowance now necessitates disclosing the place of work, actual HRA received, rent paid, and landlord information. Similarly, deductions under sections 80C and 80D require specific policy or receipt numbers and details of the insurance providers. These measures aim to reduce fraudulent claims by enabling the tax department to cross-verify the eligibility of deductions. To assist taxpayers in navigating these complex requirements, AI-driven platforms like TaxBuddy have emerged as valuable tools. TaxBuddy simplifies the tax filing process by offering automation that pre-fills ITR forms using data from PAN, Aadhaar, and uploaded documents. The platform reduces manual data entry and minimizes errors, making the process faster and more efficient. Additionally, TaxBuddy provides expert assistance for complex tax situations, post-filing support for notices or audits, and secure data handling for peace of mind. Meanwhile, affluent individuals are increasingly leveraging agricultural income exemptions to reduce their tax liabilities. Under the Income Tax Bill 2025, while genuine agricultural income remains tax-free, the government has introduced stricter documentation requirements to verify farming activities. This move aims to curb the misuse of agricultural income exemptions by wealthy individuals who invest in farmlands primarily for tax benefits. Tax experts have highlighted cases where individuals with substantial agricultural revenues have legally avoided significant tax payments, underscoring the need for more transparent and equitable tax policies.
Time of India
30-05-2025
- Business
- Time of India
India may Float Paper on Crypto Norms in June
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Epaper India is likely to float a discussion paper next month outlining policy framework options for crypto assets amid growing acceptance for them, thanks in large part to US President Donald Trump embracing digital currencies, people familiar with the matter discussion paper is likely to draw from the synthesis paper prepared by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) while seeking opinions on practices being adopted by various jurisdictions. 'The discussion paper on crypto assets is being given finishing touches,' said one of the persons cited, adding that it could be posted for public comments next has an ambiguous position on cryptocurrencies. In FY23 budget, India imposed a 30% tax on gains from virtual digital assets while clarifying this didn't give legal validity to it mandated that crypto exchanges operating in India must register with the country's Financial Intelligence Reserve Bank of India has urged caution over possible misuse of cryptocurrencies, including money laundering and terror financing, and is establishing its own Central Bank Digital Currency (CBDC) as a safer Centre is expected to firm up its stance on crypto assets only after an in-depth discussion on issues related to them with all stakeholders and evaluating regulatory frameworks in other countries.'India will take a call keeping in view its own national interest,' said a senior government official. 'No knee-jerk decision would be taken in view of the wide ramifications of this industry.'Bharti Group chairman Sunil Mittal also made a strong case for a crypto framework on Thursday.'Look at the case with Crypto now. Crypto, in the last six to eight, 10 weeks has started to move at a pace which has never been seen before, when the Trump administration has been supporting cryptocurrencies,' Mittal said, adding that India will have to get a handle on it.'So far, the position was no... crypto will not be allowed. We will probably try our own digital currency. But I think with the US moving so fast, you need to have strong regulations, policies, look at what's going on in the world, and then look at and see what impact it has,' he US, a major opponent of such assets under the Biden administration, is now eyeing pro-crypto legislation and has already set up a strategic bitcoin the Trump administration has also pardoned Ross Ulbricht, the founder of Silk Road, an online dark web marketplace that was key to the early growth of vice president JD Vance called on the crypto industry to maintain pressure on Congress to pass pro-crypto legislation supported by the White was speaking at a bitcoin conference in Las Vegas on Wednesday. At the same conference, Pakistan announced the establishment of its first government-backed strategic bitcoin reserve while inviting investment in the country's crypto markets.
Time of India
29-05-2025
- Business
- Time of India
India may float paper on crypto assets norms in June
India is likely to float a discussion paper next month outlining policy framework options for crypto assets amid growing acceptance for them, thanks in large part to US President Donald Trump embracing digital currencies, people familiar with the matter said. The discussion paper is likely to draw from the synthesis paper prepared by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) while seeking opinions on practices being adopted by various jurisdictions. 'The discussion paper on crypto assets is being given finishing touches,' said one of the persons cited, adding that it could be posted for public comments next month. India has an ambiguous position on cryptocurrencies. In FY23 budget, India imposed a 30% tax on gains from virtual digital assets while clarifying this didn't give legal validity to them. 'No Knee-jerk Decision' Later, it mandated that crypto exchanges operating in India must register with the country's Financial Intelligence Unit. The Reserve Bank of India has urged caution over possible misuse of cryptocurrencies, including money laundering and terror financing, and is establishing its own Central Bank Digital Currency (CBDC) as a safer alternative. The Centre is expected to firm up its stance on crypto assets only after an in-depth discussion on issues related to them with all stakeholders and evaluating regulatory frameworks in other countries. 'India will take a call keeping in view its own national interest,' said a senior government official. 'No knee-jerk decision would be taken in view of the wide ramifications of this industry.' Bharti Group chairman Sunil Mittal also made a strong case for a crypto framework on Thursday. 'Look at the case with crypto now. Crypto, in the last six to eight, 10 weeks has started to move at a pace which has never been seen before, when the Trump administration has been supporting cryptocurrencies,' Mittal said, adding that India will have to get a handle on it. 'So far, the position was no... crypto will not be allowed. We will probably try our own digital currency. But I think with the US moving so fast, you need to have strong regulations, policies, look at what's going on in the world, and then look at and see what impact it has,' he said. Washington Turnaround The US, a major opponent of such assets under the Biden administration, is now eyeing pro-crypto legislation and has already set up a strategic bitcoin reserve. Notably, the Trump administration has also pardoned Ross Ulbricht, the founder of Silk Road, an online dark web marketplace that was key to the early growth of bitcoin. US Vice President JD Vance called on the crypto industry to maintain pressure on Congress to pass pro-crypto legislation supported by the White House. He was speaking at a bitcoin conference in Las Vegas on Wednesday. At the same conference, Pakistan announced the establishment of its first government-backed strategic bitcoin reserve while inviting investment in the country's crypto markets.
Hindustan Times
29-05-2025
- Business
- Hindustan Times
The changing contours of private credit
Despite a seemingly endless supply of and demand for private credit, the rapid expansion of the market has been a cause of concern for some regulators and executives. Should investors be worried? This brief explores certain aspects of private credit that warrant a close look—including the retailisation of the market and the current interest rate environment. It highlights the implications for financial stability, including the potential for finance to be rendered a disservice to the real economy. The financial cycle is never eradicated, nor is financial instability ever really extinguished. On the contrary, financial risk moves like liquid mercury out of certain entities and into others. And increasingly credit-fuelled economies are especially prone toward credit crises. In many ways, regulation can be backward-looking, and thus can often be directed toward the last crisis. Over 17 years since the Global Financial Crisis (GFC), regulators maintain a keen focus containing banking crises; justifiably so, as the recent banking wobbles in the United States (US) in March 2023—and those which rippled across the Atlantic—demonstrate that risks are still inherent (and perhaps contagious) within the global financial system. And yet, looking beyond the traditional banking system, potential vulnerabilities lurk within certain elements of the system of non-bank financial institutions (NBFIs). The late American economist, Hyman Minsky observed that strong medicine can have strong side effects. And one side effect of the regulation imposed upon globally systemic important banks (GSIBs) in the wake of the GFC has been for a swelling of assets under management (AUM) held by the NBFIs. As shown in Figure 1, since the GFC, the spread between the global AUM held by the shadow banks (NBFIs) and those held by the traditional banks has widened considerably. Accordingly, the Financial Stability Board (FSB) has been focused on 'strengthening the resilience' of the NBFIs on a global basis, given the lack of transparency and systemic stress testing within the industry. This paper can be accessed here. This paper is authored by Alexis A Crow, ORF, New Delhi.
Toronto Star
21-05-2025
- Business
- Toronto Star
G7 finance ministers to discuss global economy, Ukraine at Banff summit
BANFF - Top economic officials from the G7 have locked in for a full day of closed-door discussions in Banff, Alta., to examine pressing topics including the global economy and the war in Ukraine. The meeting between the group's finance ministers and central bank governors in the Rocky Mountains is a prelude to the G7 leaders summit in June in nearby Kananaskis, Alta. It comes in the wake of global tariffs initiated in early April by the United States, which have caused many countries to reconsider their trading relationships. ARTICLE CONTINUES BELOW With the slopes of Mount Rundle as a backdrop, Finance Minister François-Philippe Champagne and Bank of Canada Governor Tiff Macklem shook hands and stood for a photo with the group Wednesday morning. 'We brought the sunshine for you, minister — Canadian sunshine,' Champagne, flanked by two Mounties, told Japanese Finance Minister Katsunobu Kato in the courtyard of the Rimrock Resort Hotel. Leaders of organizations, including the World Bank, the International Monetary Fund and the Financial Stability Board, are also at the meeting. 'We've got lots of financial reform on the agenda,' Macklem said to Klaas Knot, chair of the Financial Stability Board. 'I love financial stability, today and tomorrow,' Knot replied. U.S. Treasury Secretary Scott Bessent, one of the key architects behind President Donald Trump's sweeping tariffs, is also in Banff, along with Jerome Powell, chair of the U.S. Federal Reserve, who Trump has threatened to fire on several occasions in recent months. Bessent and Champagne exchanged a friendly handshake at the photo opportunity. 'It's great to have you here,' Champagne said. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW In an earlier statement, Bessent's office said he plans to use the meeting to 'focus on the need to address global economic imbalances and non-market practices.' Champagne said Tuesday the 'spirit around the table is constructive,' when it comes to its discussions with the United States. Ministers did not take questions from media and aren't expected to comment on the meeting until it wraps Thursday. After photos were snapped, the officials marched toward the doors of the hotel in pairs. 'Let's get to work,' Champagne said as he directed them inside. The G7 comprises Canada, the United States, France, Germany, Italy, Japan, the United Kingdom and the European Union as a 'non-enumerated member.' This report by The Canadian Press was first published May 21, 2025.
