Crypto–currencies: The National Payments Corporation of India (NPCI) has clearly stated that it is not aware of any virtual digital asset exchange using the Unified Payments Interface (UPI) for any transaction. The National Payments Corporation of India (NPCI) would like to make it clear that we will not be able to access any crypto exchange using UPI, the statement said. There is no information about it.’
There were reports of buying crypto-currencies through UPI
This statement of NPCI comes after media reports of buying cryptocurrency options through UPI. NPCI is the organization operating the retail payment and settlement system in India. Meanwhile, an official said that the 30 percent ‘crypto tax’ proposed in the Union Budget has come into effect from April 1. After this, the Income Tax Department will keep a close watch on every transaction of the crypto exchange.
Keeping a close eye on cryptocurrency exchanges
Officials said that income tax officers have been directed to do so by the Central Board of Direct Taxes (CBDT). A senior finance ministry official said, “Our officials will keep a close watch on the cryptocurrency exchanges, which number around 40, where transactions are being conducted in major digital coins like Bitcoin, Ethereum.
Business up to Rs 1 trillion
Officials said that out of 40 cryptocurrency exchanges, 10 are primarily dealing in the sale and purchase of cryptocurrencies and their turnover is between Rs 34,000 crore and Rs 1 trillion. Apart from crypto exchanges, IT officials will also track crypto transactions through reporting entities, he added. He further added that by July 1, 2022, when the department will start deducting 1 percent TDS on crypto transactions, it will become easier for the department to track crypto transactions.