Business
Budget 2022: Experts exhort Centre to regulate crypto trades

Even as Union Finance minister Nirmala Sitharaman is set to present the annual Budget on February 1, experts have called for regulation of cryptocurrencies and exhorted the government to treat them as capital assets with a “reasonable” tax regime.
While the sector has grown exponentially over the last few years in India with buying, selling of the digital currencies and altcoins and establishing cryptocurrency exchanges being legal, the government is yet to bring in a law that regulates the sector.
The government was expected to introduce a Bill titled “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” to regulate cryptocurrencies in the Winter session of the Parliament but did not do so. It is now expected to be tabled in the Parliament during the Budget session that starts on January 1 and ends on April 8.
Pratik Gauri, CEO, and Founder, 5ire said the government has a responsibility to protect people from investments that are sensationalized, and while risk-taking is every investor’s right, a measured hand where investment and holding parties responsible go hand-in-hand.
“Laissez-faire has never worked in populations where every rupee is hard-earned and we are a nation of hard-earners. Even in terms of governance, the Indian government is looking long and hard at accountability. So, taxation and regulation of investment falls under its purview and I think, thus far the government has done a remarkable job of balancing the need to encourage investment for innovation and the restriction on gaining from wild speculation,” he said.
He added that all gains from cryptocurrencies are taxed heavily across the globe and that asking to pay a fair share of taxes on the gains in crypto markets is just part of the puzzle.
Prime Minister Narendra Modi, while virtually addressing a summit of the World Economic Forum on January 17, had called for a synchronized global action to regulate cryptocurrencies. The Reserve Bank of India has publicly favored a ban on private cryptocurrencies. The crypto assets in India are currently estimated at around Rs 45,000 crore with about 15 million investors.
The risk in the widespread adoption of crypto is that poor AML and fraud practices are heavily present in the crypto exchange market. The reasons are multifold: Enhanced Due Diligence (EDD) is not required on crypto exchanges or ATMs at this time.
Raj Kapoor, Founder – India Blockchain Alliance and Chief Growth Officer at Chainsense LTD, said an alignment with the FATF framework would also provide crypto for a clearer framework on performing AML compliance, and to prepare to use this to inform your risk assessment and procedures.
The Customer Due Diligence (CDD) scanner to detect customer identification, especially for scanning high-risk customers would then be in place as well.
Ravi S. Raghavan, Partner, Tax and Private Client Group at Majmudar & Partners says cryptos should be treated as capital assets and reasonable tax regime such as a levy of 18 per cent GST on fee collected by exchanges for enabling buying and selling cryptos; and Investor profits to be either taxed as – short term capital gains (for cryptos held for less than 36 months) at 30 per cent; or long term capital gains tax (for cryptos held for more than 36 months) at 20 per cent that is similar to trading and investment in securities.
“Reporting procedures in income tax returns and whether tax withholdings are applicable (beyond prescribed thresholds) should be explained in the form of an FAQ by the Central Board of Direct Taxes in due course to avoid any tax litigation,” he said.
He added that crypto trading should be considered by the government as speculative transactions and no losses arising from crypto sales be allowed to be carried forward and set off against other business profits or salary income of the concerned taxpayer.
Regulating cryptocurrencies by bringing it under the IT Act will make it a part of the investment choices and while most investors do not have a problem with taxation, they seek clarity and consistency of taxes.
“Anything that is banned never goes away, it just goes underground and the govt misses out on the tax revenues. Also regulating it would ensure that all loopholes are plugged and people don’t feel the need to evade taxes,” Kunal Verma director and creative head of Yunometa Pte limited said.
Business
ICEA launches industry-wide initiative to foster tech and AI innovation

New Delhi, June 3: The India Cellular and Electronics Association (ICEA) on Tuesday announced a unique industry-wide initiative to collaboratively foster tech and AI innovation for the benefit of India’s manufacturing sector.
The programme will connect companies with transformative innovations across domains such as advanced manufacturing, AI, IoT, energy efficiency, materials science, and more.
The ICEA launched Venture Access Labs — a technology innovation access programme in collaboration with venture capital fund Caret Capital.
This initiative aims to empower India’s electronics and appliances manufacturing companies by enabling them to discover, curate, and adopt cutting-edge technologies and innovations from across the world.
“Through Venture Access Labs, ICEA is proud to champion and unlock global innovation to strengthen India’s position as a global hub for manufacturing and electronics with a vision to build Indian Champions,” said Pankaj Mohindroo, Chairman, ICEA.
“By opening the door to international technological advancements and building an innovation pipeline, we aim to accelerate India’s electronics manufacturing capabilities and global competitiveness so as to capture a larger global market share,” he added.
The comprehensive programme will cover several functions including procurement, planning, manufacturing, supply chain, finance, HR, legal and ESG.
Through this programme, companies will benefit from innovation trend spotting, curated access to high-impact startups and Ips, strategic matchmaking and pilot opportunities, tailored adoption pathways for new technologies, and facilitated investments in strategically relevant, vetted high-potential startups.
“It is time for the Indian electronics and appliances manufacturing to transit to tech first-led global leadership,” said Salil Kapoor, Co-founder and Chief mentor of Venture Access Labs.
It will be the innovation catalyst and partner, scanning and curating the latest tech and game-changing startups from across the world for Indian manufacturing companies to engage with, at a fraction of the cost if they were to do it on their own,” he mentioned.
National
Calcutta HC refuses ad-interim bail to law student held for hurting religious sentiments, seeks case diary

Kolkata, June 3: The Calcutta High Court on Tuesday denied ad-interim bail to Sharmistha Panoli, the 22-year-old law student arrested recently by Kolkata Police on charges of hurting religious sentiments and promoting disharmony and hatred.
As her counsel approached the High Court, challenging the trial court’s order last week sending her to judicial custody till June 13, the matter came up for hearing before the vacation bench of Justice Partha Sarathi Chatterjee.
However, Justice Chatterjee denied any relief to Panoli, observing that the freedom of speech in the country does not allow anyone to hurt anyone’s religious sentiment.
An FIR was registered against Panoli at Garden Reach Police Station on May 15 for posting an Instagram video, where she made some comments on ‘Operation Sindoor’ that had reportedly hurt the religious sentiments of a particular community.
In the face of strong criticism, she deleted that video and also tendered a public apology for the matter. However, based on the FIR registered, the police first sent her a notice, which failed since she had gone into hiding in Gurugram by then.
Thereafter, an arrest warrant was issued against her, and finally, she was arrested from Gurugram by Kolkata Police on Saturday morning and was brought back to Kolkata on transit remand on the same day.
Rejecting the ad-interim bail, Justice Chatterjee observed that the video posted on social media had reportedly hurt the religious sentiments of a section of people. “We have freedom of speech, but that doesn’t mean you will go on to hurt others. Our country is diverse, with all people. We must be cautious,” he said.
He directed the police to submit the case diary in the matter by the next date of hearing on June 5.
The vacation bench also directed the state government to ensure that police do not pursue any other complaint filed against Panoli in any other police station. It also directed the police not to register any fresh complaints in the same matter.
National
Bodies of three workers recovered from flooded illegal coal mine in Jharkhand’s Hazaribagh

Hazaribagh, June 3: Thirteen days after they were trapped, the bodies of three workers have been recovered from an illegal coal mine in Keredari block of Jharkhand’s Hazaribagh district, officials said on Tuesday.
The deceased, whose bodies were recovered late on Monday night, have been identified as Pramod Shah, 45, Umesh Kumar, 25, and Naushad Ansari, 24 — all residents of Kandaber village under the Keredari police station area.
The three men were reportedly swept into the mine on May 21, when heavy rainfall caused the Khawa River to swell.
Villagers said the strong current pushed the workers into one of the numerous illegal tunnels that dot the region, many of which are controlled by coal mafias and continue to operate despite the risks involved.
The mine shaft where they were trapped was more than 100 feet deep and quickly flooded, making rescue efforts extremely challenging.
The National Disaster Response Force (NDRF) conducted a three-day operation to locate and retrieve the bodies but had to suspend efforts due to waterlogging.
Subsequently, the task of dewatering the mine was taken up by NTPC and a private company. After days of continuous pumping, the water level finally receded, which enabled local villagers to recover the bodies late on Monday night.
On Tuesday morning, police sent the bodies for autopsy to Sheikh Bhikhari Medical College and Hospital in Hazaribagh. After the post-mortem, the bodies were brought back to Kandaber and cremated on Tuesday afternoon.
The incident plunged the village into mourning, with relatives and neighbours breaking down as the news spread.
There were scenes of chaos and wailing as the bodies were brought into the village.
Following the recovery, villagers renewed calls for compensation and the provision of government jobs for one dependent of each deceased worker.
Despite repeated incidents, illegal mining continues unabated in the Khawa river belt of Keredari, drawing hundreds of locals desperate for work and vulnerable to exploitation.
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