Reports from the best news site for cryptocurrency show that the Tax proposal for cryptocurrency Tax policy in India is all set to move to the country’s parliament on the 24th of March this year. The announcement was first made by the finance minister of India in the month of February.
According to the reports, this particular policy was proposing a 30% taxation rate on the digital asset transactions that took place in the country. In a country like India, such rates are pretty high and there were already some existing laws for the transaction of cryptocurrencies in the country.
If the policy is properly approved by the Parliament of India, it will soon become a law and the citizens of the country have to follow it.
The Finance Minister of India, Nirmala Sitharaman had made the proposal for a 30% tax policy on all the transactions in the country related to cryptocurrency or digital assets. Well, this policy which is an amendment to the different laws that already exist in the country could soon become a law itself. The lower house of parliament of India will be voting on the consideration of the legislation today.
India is a country that has differentiated views when it comes to the transactions and trading of cryptocurrency in the first place. While there are certain organizations such as the RBI or the Reserve Bank of India that propose an overall ban on the trading activities of cryptocurrencies, the Indian government is keener on having a regulatory framework for the proper control of cryptocurrency in the best way.
Going by the reports of different news sites, the policy that the Finance Minister of India has tried to introduce might be a part of the regulatory framework for cryptocurrency in order to have some control over the volatile and unpredictable market.
New Policy for Taxation on Transactions of Crypto To Reach Parliament for Consideration
According to a Wednesday publication, Sitharaman will be introducing appropriation and finance bills for 2022 to the Lok Sabha — the lower house of parliament — on Thursday. The Finance Bill includes an amendment to the country’s income tax laws identifying “virtual digital assets” — including cryptocurrencies and nonfungible tokens — as taxable investments.
First announced by the finance minister in February, the amendment to India’s existing laws proposed a 30% tax targeting digital asset transactions. Sitharaman added at the time that losses incurred from crypto trading would most likely be ineligible for offsetting taxes from any profits. In addition, no deductions would be allowed while calculating income “except the cost of acquisition.”
Under this tax calculation, traders would likely have to pay 30% taxes on gains from cryptocurrencies including Bitcoin (BTC) and Ether (ETH), but not account for losses should the price of the coins fall. Cointelegraph reported that many experts criticized the proposal, which will likely go into effect April 1 following discussion on Thursday.
The tax policy on crypto is seemingly a legislative substitute for a previously proposed bill that would have banned “private cryptocurrencies” in India. According to the Lok Sabha’s most recently published list of business, India’s parliament is not scheduled to hear a discussion on the crypto bill during its budget session, which ends April 8.
With a population of roughly 1.4 billion, India has not established a concrete regulatory framework for digital assets following the country’s supreme court decision in 2020 to lift a ban from the Reserve Bank of India on banks’ dealing with crypto firms.
According to the best news site for cryptocurrency, the tax proposal under consideration seems to be the closest crypto markets have been to gain some sort of legal status in India.
Also Read: From April 1, India will Levy a 30% Tax on Crypto Profits
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