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Cryptocurrency tax exemption likely in India for certain transactions - India Blogger

  • Gifts of crypto will be taxed just like any other asset.
  • Cryptocurrency transactions are taxed at 30 per cent under the Finance Act, 2022.

The Indian government’s finance ministry will likely announce a crypto tax in June. Hospitals that use blockchain technology and earn points on digital bank cards or flight miles may also be exempted from this rule. Cryptocurrency transactions are taxed at 30 per cent under the Finance Act, 2022, and 1 per cent TDS is added to the transfer of digital assets.

TDS which is currently set at $643 USD must be paid regardless of whether profit or loss is realized through crypto transactions. This information must be included in the taxpayer’s annual tax return. According to the rules, gifts of crypto will be taxed just like any other asset.

Uncertainty over regulatory framework

In this year’s annual budget, the government said it would impose a 30 percent tax on earnings from cryptocurrency investments. Nevertheless, the nation has not yet given legal legitimacy to the policy.

The government will issue an advisory document on digital currency in the near future. There may be delays in the implementation of the legal and regulatory framework. According to Economic Affairs Secretary Ajay Seth, financial institutions including the World Bank and the International Monetary Fund have been consulted. The bureaucrat said that the consultation document is almost over. Seth has remained silent about the timing, but sources say it may go on floors in August this year.

An Indian Rupee-denominated index tracking the performance of the eight most valuable cryptocurrencies by market capitalization has also been launched by Coinswitch Kuber, one of India’s most renowned crypto exchanges.



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