India Imposes Up To 30% Tax On Cryptocurrency

According to SI.35 in ​​the Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes), India’s parliament has just passed a new law imposing a 30% tax on services which includes: transfer or income from the virtual digital assets placing it in the same taxable category as stock trading.

As such, Indians will have to pay a 30% capital gains tax, which is assessed on the difference between the sale price of the property and its original purchase price in cryptocurrency transactions. 

The legal regulation of cryptocurrencies like Bitcoin is still unclear due to the lack of legislation in the country. Investors debate India’s Union Budget tax plan on cryptocurrencies that legalizes crypto trading. But according to Finance Minister Nirmala Sitharaman, taxing cryptocurrencies does not make them legal. This issue is currently under review.

Experts say that imposing a withholding tax at source will help prevent speculative transactions. Nischal Shetty, the founder of the cryptocurrency trading platform WazirX, estimates the new tax policy could bring in an additional $100 million in government revenue.

Nirmala Sitharaman is the submitter and promoter of the new tax collection law on crypto transactions in India.

More than 20% of the Indian House of Representatives strongly oppose this bill. They criticized the lack of clarity in the definition of cryptocurrencies in the law, with many MPs arguing that imposing such a tax would “end the crypto industry.” This new law has caused much controversy and irritation among crypto investors in India.

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