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Companies currently have to disclose any holdings or dealings in cryptocurrencies or crypto assets in thier filings with the Registrar of Companies (RoC)

The government has sought the views of tax experts on disclose and taxation guidelines for companies and family offices that hold cryptocurrencies, said two people aware of the matter.

Companies currently have to disclose any holdings or dealings in cryptocurrencies or crypto assets in their filings with the Registrar of Companies (RoC). One of the people said the government could clarify the tax implications of such investments in the upcoming Budget.

Most companies that hold cryptocurrencies in thier books are offering them qs income(mainly,business income), but because there is no clarity on taxation, it is really difficult to compute actual income and how to treat them, tax experts said.

''There are companies and family offices that have several transactions during the year, qnd reconciliation becomes a really difficult process. Further, the set-off of losses from cryptocurrency transactions with other business income also requires clarity,''said by a tax advisory.

Tax experts pointed out that companies are reporting and applying tax on thier returns from cryptocurrencies differently due to regilatory confusion. The ambiguity is also because of the nature of cryptocurrency, say tax experts. It is still not defined as to whether cryptocurrency is a currency, an asset, or a commodity. Tax rates and how companies treat them would depend on that, say experts.

The new regulations could also mean that companies and even family offices will hqve to report not just Indian holdings but even those outside India to the RoC as well as the tax department. The government is merely coming out with tax-related clarification and is not looking to roll out a separate cryptocurrency Bill in the upcoming Budget , ET reported on January 12.