Fun

India Proposes 30% Tax on Crypto Income — Finance Minister Cites ‘Phenomenal Increase’ in Crypto Transactions

News Feed - 2022-02-02 12:02:29

India Proposes 30% Tax on Crypto Income — Finance Minister Cites "Phenomenal Increase" in Crypto Transactions


The Indian government has proposed taxing income from cryptocurrencies and other digital assets at 30%. India’s finance minister, Nirmala Sitharaman, said: “There’s been a phenomenal increase in transaction in virtual digital assets … The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime.” 30% on Crypto Income


Indian Finance Minister Nirmala Sitharaman proposed taxing income from cryptocurrencies and other digital assets at 30% while presenting the federal budget Tuesday. She said: I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30%. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except the cost of acquisition.


“There’s been a phenomenal increase in transaction in virtual digital assets,” the finance minister added. “The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime.”


The tax proposal puts cryptocurrencies and non-fungible tokens (NFTs) in India’s highest tax band.


Harish Prasad, head of banking, India, FIS, was quoted as saying: “This has been a much awaited announcement in the context of the interest and growth in investments into these assets. The uncertainty and concerns on the legal, regulatory and taxation status of cryptocurrencies are addressed to a reasonable extent by virtue of this announcement.”


Avinash Shekhar, the CEO of crypto exchange Zebpay, commented: Thirty percent tax on income from virtual digital assets, while high, is a positive step as it legitimizes crypto and hints at an optimistic sentiment towards further acceptance of crypto and NFTs.


Nischal Shetty, the CEO of crypto exchange Wazirx, commented: “We also hope this development removes any ambiguity for banks and they can provide financial services to the crypto industry.”


However, tax consultants warned that individuals could end up paying more than 30% of their crypto profits in tax and other charges. Amit Maheshwari, partner at tax consulting firm AKM Global, told Reuters: “If you made a profit of 100 rupees then including the 30% tax bracket, plus surcharge and cess the total tax outgo will be around 42 rupee.”


Another announcement the Indian finance minister made Tuesday was about the launch of the country’s central bank digital currency (CBDC), the digital rupee. She said the central bank, the Reserve Bank of India (RBI), will introduce a digital currency starting in the financial year 2022-23, stating: The introduction of a central bank digital currency will give a big boost to the digital economy. Digital currency will also lead to a more efficient and cheaper currency management system. Tags in this story Finance Minister Nirmala Sitharaman, how are cryptocurrencies taxed india, how are NFTs taxed india, India, indian crypto taxation, indian cryptocurrency taxation, indian finance minister, indian NFTs, indian taxation, NFT taxation india


What do you think about India’s proposed crypto taxation? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. US Federal Trade Commission Warns About Cryptocurrency Scams Using Social Media REGULATION | 21 hours ago US Senator: "America Competes Act" Is a Direct Attack on Crypto Industry, Government Is Picking Winners and Losers REGULATION | 1 day ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBitcoin, Ethereum Technical Analysis: Ethereum Surges 10% to Start February Next articleNew Balance ‘Virtual Goods’ Trademarks Hint of Upcoming Metaverse and NFT Venture Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItNobel Laureate Paul Krugman Likens Crypto Market to Subprime Mortgage Crash — Warns Regulators Are Making the Same Mistake


Nobel Prize-winning economist Paul Krugman sees parallels between the crypto market and the subprime mortgage crash. "There’s growing evidence that the risks of crypto are falling disproportionately on people who don’t know what they are getting into and are poorly ... read more.Russians Aware of Bitcoin Divided on Proposed Crypto Ban, Poll Finds Crypto Ban in Russia Can Have Opposite Effect, Medvedev Warns as Opposition Mounts Against Proposal Ethereum Fees Drop 53% in 20 Days — Polygon Hermez, Loopring Offer Lowest L2 Fees Crypto Exchange Binance Restricts 281 Nigerian Accounts — Some Requested by International Law Enforcement

News Feed

Bitcoin Blasts Past $98,000: Is $100K Next, Or A Trap?
Este artículo también está disponible en español. Bitcoin has soared past the $98,000 on Thursday, fueling intense debate among traders over whether the $100K milestone i
Alice Ivey13 hours agoHow to use tax planning strategies for maximum savingsLearn how to navigate tax laws and regulations for optimal financial management.524 Total viewsListen to article 0:00OverviewJoin us on social n
Fake ID crypto exchange sign-ups attract 2-year prison sentence
Ezra Reguerra1 hour agoFake ID crypto exchange sign-ups attract 2-year prison sentenceAustralian authorities sentenced a man who had used other people’s identities to open accounts on crypto exchanges.640 Total views1
Derek Andersen4 hours agoMIT Digital Currency Initiative introduces at-scale, programmable CBDC platformPArSEC — short for “parallelized architecture for scalably executing smart contracts” — runs on the ERC-20
Jesse Coghlan8 hours agoHidden as colors, crypto seed phrases could hide in plain sight, says devSpeaking to Cointelegraph, Entero Positivo argued typical seed phrase storage methods are too obvious, so he devised a way
Bitcoin’s top 100 ‘dustiest’ wallets contain over $88M in BTC
Nancy Lubale1 hour agoBitcoin’s top 100 ‘dustiest’ wallets contain over $88M in BTCMore than $88 million is held in the top 100 Bitcoin wallets, which are classified as containing a “minuscule amount” of BTC.81
Decentralized Cloud Network Service Sukhavati Network Announces SKT Listing on Gate.io and MEXC
Decentralized Cloud Network Service Sukhavati Network Announces SKT Listing on Gate.io and MEXC sponsored Sukhavati Network is to host its startup sale on Gate.io
Mike Novogratz Laments US Government’s Penchant for Discussing Crypto While Saying ‘Nothing About AI Regulation’
Mike Novogratz Laments US Government"s Penchant for Discussing Crypto While Saying "Nothing About AI Regulation" Galaxy Digital Holdings chief executive Mike Novogratz has said he
Bitcoin Price Moves Similarly To The Elliot Wave Count From 2017, Why Price Can Jump Another 80%
Este artículo también está disponible en español. Crypto analyst Tony Severinohas drawn a similarity between the current Bitcoin price action and that of the 2017 bull ru
Compass Mining Partners With Oklo to Power Bitcoin Mining Operations With Advanced Fission
Compass Mining Partners With Oklo to Power Bitcoin Mining Operations With Advanced Fission Bitcoin mining firm Compass Mining announced the company has entered a
Blockchain Startup’s Digital Identity Solution Made Available to 50,000 Zimbabwean Patients
Blockchain Startup"s Digital Identity Solution Made Available to 50,000 Zimbabwean Patients Flexid Technologies, a blockchain startup promoting the use of digital identities, said
Binance says it trained investigators in Nigeria under government cooperation
Ana Paula Pereira7 hours agoBinance says it trained investigators in Nigeria under government cooperationThe relationship between Binance and the Nigerian government has drastically changed in recent months, according to