Market

India Issues New Cryptocurrency Tax Policy, Penalty Up To 7 Years In Jail

Key Points:

  • The Indian government has introduced new crypto tax penalties, including for non-payment of crypto tax at source (TDS).
  • India still regulates Crypto income and remains taxed at 30%, while TDS stays at 1%.
  • Those who fail to pay source tax on crypto transactions can be sentenced to up to 7 years in prison.
On February 1, 2023, India presented the Union Budget 2023. It included a 30% tax on crypto profits and a 1% tax withheld at source (TDS) on all transactions. Failure to do so can result in a penalty of up to 7 years in prison.

India has kept its restrictive crypto tax rules in place in 2023, i.e., last year. The country imposed complex taxes on crypto transactions: a 30% tax on profits and a 1% withholding tax (TDS) on all cryptocurrency transactions.

Accordingly, the nationwide crypto trading volume has plummeted as approximately $3.852 billion was transferred from India’s domestic crypto exchanges to foreign exchanges between the two countries. February to October 2022, according to a study by the Esya Center, a technology policy think tank in India.

In other words, to dodge tax rules, crypto investors in this country have taken the global exchange route as, unlike Indian crypto exchange platforms, popular international crypto exchanges like Binance and KuCoin do not levy the 1% TDS. However, they do perform know-your-customer (KYC) checks before allowing trading on their platforms.

As such, Finance Minister Nirmala Sitharaman presented the 2023 Union Budget to parliament on Wednesday, emphasizing the need for “a common approach to regulating the crypto ecosystem.”

Cryptocurrency tax company Koinx explained on Twitter that the penalty for failure to withhold or pay crypto source tax includes the amount that the general trusts will levy with the unpaid source tax, noting that for late payments, an annual tax of 15% will apply. And according to India Today, those who fail to pay source tax on crypto transactions can be sentenced to up to 7 years in prison.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News

Victor

Recent Posts

Dogecoin Price Reaches 5-Month High: Here’s What’s Driving The Increase 

The Dogecoin price has reached a five-month high, and investors should buy the Ethereum token…

2 hours ago

Best Cryptos to Invest in Now: Don’t Miss Out on These Potential Game-Changers!

Crypto isn’t just for the tech-savvy anymore; it’s for everyone. As more people jump into…

3 hours ago

Trust Wallet CEO Backs Web3, Plus Wallet’s Top-Tier Encryption Ensures Secure Asset Access Amid Crypto Liquidation Hits $277M

Read how Plus Wallet’s top-tier ensures secure, unified digital asset management. Get the latest updates…

6 hours ago

Former Alameda CEO Will Now Serve 2-Year Sentence

Former Alameda CEO Caroline Ellison reported to a Connecticut federal prison on November 7 after…

7 hours ago

Degen Rollup Key Issue Forces Possible Chain Restart

Degen Rollup Key Issue: Conduit seized Degen’s L3 private key, causing 54 hours of downtime…

7 hours ago

This website uses cookies.