Published: 31.03.2022
Article reading time:
2 minutes.
The upper house of the Indian Parliament approved a bill to increase the tax rate on transactions with cryptocurrencies up to 30%.
The tax on storage and transactions for the transfer of cryptocurrencies has been increasing since April 1, 2022. The approval of the bill by the upper house of the Rajya Sabha took place on March 31, a week after the approval of the lower house of the Lok Sabha.
The bill was submitted to Parliament in January. According to the document, traders will not be able to compensate for their losses from profits, and each trading pair will be considered separately for a tax deduction.
The Indian authorities have introduced a one percent tax deduction (TDS) on every transaction, arguing that this will help track the movement of funds. However, exchange operators have already warned that TDS could drain liquidity.
Cryptocurrency trading income in India is now defined as financial services income, subject to an 18% tax.
Back in November last year, the Indian government was considering reducing the Goods and Services Tax (GST, analogous to VAT) paid on the purchase or sale of crypto assets from 18% to 1%. In February 2021, the Indian authorities already tried to consider raising the tax on cryptocurrencies, but faced community resistance. Recall that it all started with the fact that in 2020, the Central Economic Intelligence Bureau of India (CEIB) proposed to impose a goods and services tax (GST) on bitcoin trading, which is 18%.
Source: Bits
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