Recently several reports stated about purchasing digital assets on crypto exchange platforms and the possibilities of using UPI.
On Thursday, the National Payments Corporation of India made it clear that it is unaware of activities like trading and purchasing of cryptocurrencies using payment methods through the Unified Payments Interface. The statement referred to some recent media reports around the cryptocurrency purchasing claims to use UPI.
NPCI stated that the National Payments Corporation of India clarifies that the organization is not aware of using UPI by any crypto exchange for buying or trading cryptocurrencies. Several media reports refer to cryptocurrency purchasing in the country.
National Payments Corporation of India is more like an umbrella organization that acts as a country’s retail payments and settlements system. Its recent statement came out in the backdrop of some media reports claiming that cryptocurrencies were purchasing options via UPI.
At the same time, the Income Tax Department of India would overview every transaction made on crypto exchanges following the proposed regulation of 20 percent crypto tax in the Union Budget of this year came into effect on April 1st, 2022. Further officials also said that Income tax officials had been directed to do so by the Income Tax Department’s apex body, the Central Board of Direct Taxes (CBDT).
A Finance Ministry’s senior official said that the officers would keep a close eye on cryptocurrency exchange platforms that are approx 40 in number. Such crypto exchanges handle transactions in major digital assets, including Bitcoin, Ethereum, and many more.
Officials told about those 40 crypto exchanges out of them; majorly ten are dealing in cryptocurrencies sales and purchases, and their overall turnover totals between Rs 34,000 crore to Rs 1 trillion. The officials also said that the IT investigators, other than crypto exchanges, will also track the activities related to crypto transactions through the entities involved in reporting such activities.
By July 1st, 2022, the department will also start deducting 1 % TDS or Tax Deducted at Source on crypto-related transactions, as mentioned in the budget proposal and the 30% tax imposition. Officials said it would be easier to track crypto transactions after implementing the TDS regime.
Source: https://www.thecoinrepublic.com/2022/04/08/national-payments-corporation-is-unaware-of-crypto-exchanges-using-upi/