In recent years, India’s cryptocurrency situation are seeing a lot of ups and downs. Cryptocurrencies like Bitcoin, Dogecoin, Shiba Inu, have been the subject of a lot of debate between the government and the netizens. Finance Minister Nirmala Sitharaman in the recent Budget 2022 session that India plans to tax cryptocurrency and digital assets like NFTs at 30 percent.
Indian Finance Minister Announced 30% Tax on Crypto, NFT , Blockchain
However, despite expectations that the country’s Finance Minister (FM) would address this issue in the Budget 2022 speech, some cryptocurrency experts and investors feared that he wouldn’t. On the other hand, Prime Minister Nirmala Sitharaman took note of the crypto situation and announced that perhaps the government might very well begin taxing cryptocurrency income and other digital assets at a 30 percent rate beginning in 2019. The Minister went on to say that in the event of a loss, there would be no set-off allowed. Furthermore, the recipient would be responsible for paying taxes on any virtual digital assets they receive as a gift.
As a result of India’s new tax policy on cryptocurrency and digital asset income, the country’s government has now officially recognised cryptocurrency as an investment option within its borders. However, some cryptocurrency experts are concerned about the high tax rate of 30%.
Virtual digital assets (like crypto) should not be subject to a specific tax regime, even though it may provide greater clarity for investors. Cryptocurrency transactions will be discouraged because of the 30 percent tax rate and the prohibition on deducting losses, Ritesh Kumar, a partner in the IndusLaw law firm, said.
There are some who see this as a significant step forward in the regulation of cryptocurrency in India. WazirX c0-founder Siddharth Menon and Founder Nischal stated on Twitter that “the clarification on crypto tax has become such a progressive indicator by our government.”
So, what are your thoughts on India taxing cryptocurrencies and other digital assets at a rate of 30%? Does this bode well for Indian crypto investments? Let us know what you think by leaving a comment.