ICAI Tells Parliament Clear Crypto Rules Will Improve Accounting, Audits, Tax Compliance, and Financial Reporting
The Institute of Chartered Accountants of India (ICAI) has asked the government to bring a proper law for VDAs, including cryptocurrencies. At the same time, the institute made one point quite clear. It does not support crypto assets and has not taken any position against the RBI.
ICAI shared its views before the Parliamentary Standing Committee on Finance, which is studying the future of VDAs in India. The institute attended the meeting to explain accounting, auditing, taxation, and financial reporting related to crypto assets. It did not ask the government to legalize cryptocurrencies.
ICAI Calls for a Clear Legal Framework
People familiar with the meeting stated that the ICAI advised the government to move carefully while making rules for crypto assets. The institute said that a strong legal framework would bring better clarity for businesses, auditors, and tax authorities. It noted every future step should come through a proper law instead of separate policy decisions.
Sources added that ICAI has always supported the government’s final policy decisions. The institute also repeated that it has never expressed any opinion that goes against the RBI’s stand on cryptocurrencies. Its presentation focused only on technical matters and not on government policy.
Three ICAI committees took part in the presentation. These included the Accounting Standards Board, the Direct Taxes Committee, and the Digital Accounting and Assurance Board. They explained how companies should report VDAs in financial statements, follow audit rules, and meet tax requirements.
The presentation also covered disclosure rules under the Companies Act, 2013, along with tax provisions that already apply to Virtual Digital Assets. ICAI explained the current accounting and reporting system without recommending any change in the government’s crypto policy.
ICAI Focuses on Accounting and Compliance
India’s crypto debate is slowly moving beyond taxes. Lawmakers are now looking at accounting, reporting, and compliance rules that could create more clarity if the government introduces a legal framework in the future.
The RBI also presented its views before the parliamentary panel. According to reports, the central bank again warned that cryptocurrencies could create serious risks for India’s economy. It said Virtual Digital Assets may help illegal activities such as money laundering, terror financing, and drug trafficking. The RBI also pointed to the difficulty of tracking crypto transactions that take place across different countries.
Parliamentary Standing Committee Chairman Bhartruhari Mahtab also said after the meeting that the RBI continues to oppose the legalization of cryptocurrencies in India.
India already taxes crypto income heavily. Profits from Virtual Digital Assets attract a flat 30% tax. A 1% Tax Deducted at Source (TDS) also applies to eligible crypto transfers. Even with these tax rules, India still does not have a complete law covering cryptocurrency trading, exchanges, or investor protection.
RBI Keeps Cautious Stand on Crypto
The parliamentary committee is now collecting views from different experts and organizations before giving its recommendations to the government. These discussions could help shape India’s future crypto regulation.
ICAI’s latest submission shows that the institute wants clear legal rules instead of uncertainty. It believes proper laws would improve accounting standards, financial reporting, and tax compliance for VDAs. At the same time, ICAI has made it clear that asking for a legal framework does not mean supporting cryptocurrencies. The institute continues to stand with the RBI’s cautious approach while offering technical guidance on crypto-related matters.
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