Saturday, January 28, 2023

India Considers Taxing Crypto Trade And Ecosystem

The Indian Government is reportedly considering taxing crypto trades and crypto exchanges in the country. 

A report released by ET Now specified that the Income Tax Department of India is interested in taxing the profits earned through crypto trading and exchanges. 

However, it further mentions that taxing cryptos does not mean they would be considered as a valid asset class position. 

While talking about the recent development, Nischal Shetty, the CEO of WazirX, said, “It’s a no-brainer that your crypto earnings are taxable like other income and should be declared in the Income Tax Returns. As of now, it is not clear whether the GST would be applied on the amount of cryptocurrency bought or on the transaction fees paid by the user.”

A report published earlier, highlighted that the Indian Government was also in favor of taxing all those activities which generated income in cryptocurrencies. 

At present nothing could be confirmed, the citizens are waiting for the crypto bill, which needs cabinet approval.  As soon as the bill gets approved it will provide clarity to the government’s decision.

On September 09, the Reserve Bank of India Governor Shaktikanta Das expressed his concerns over cryptocurrencies. He stated that the RBI has conveyed its concern regarding cryptocurrencies, from financial stability point of view, to the government.

One of the Indian crypto investors named Evan Luthra has recently stated that he believes taxing cryptos is a good thing.

He further stated, “I think investors and potential investors have nothing to be scared about. Governments that realize the true potential of cryptocurrencies and bring in policies to support the innovation will be the leaders of the future.”

Earlier this year, a booklet was released by RBI in which it explored the use cases of the digital version of fiat currency. 

On one hand, the Indian Government sees only two viable options for cryptos, which include adoption or ban, while on the other hand, the RBI has stated that if there would be a need then it will introduce the country’s own CBDC.

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