India’s new tax policy on cryptocurrencies comes into effect on April 1, 2022. However, the Indian crypto community believes that this will undermine the development of the industry in the country.
Initially, the draft “Law on cryptocurrencies and regulation of the official digital currency” was planned to be approved in 2021, however, under pressure from the public, uninterested in tightening the taxation of cryptocurrency transactions, its signing was postponed to 2022.
The founder of the Indian cryptocurrency exchange WazirX, Nischal Shetty, believes that high taxes on digital currencies will cause an outflow of intellectuals from the country. In his opinion, in India, it is necessary to create a favorable ecosystem for technology companies, and not hinder their development. However, as of April 1, 2022, a new tax policy for cryptocurrencies comes into effect in India. The tax on income from cryptocurrency transactions will be 30%. This is the highest tax in India.
In addition, the parliamentary clarification to the draft “Law on cryptocurrencies and regulation of the official digital currency” states that each cryptocurrency trading pair will be considered independently, and traders will not be able to compensate for their losses with profits from another trading pair. This means that if a trader invests $100 in each of the two tokens and suffers a loss on one investment while making a profit on the other, they will have to pay taxes on their profitable trade regardless of the loss.
Recall that this month, amendments to the law on strengthening measures to prevent money laundering and terrorist financing came into force in Estonia. This will make the regulation of digital asset platforms in Estonia even stricter than the general EU rules.
Source: Bits
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