In India, cryptocurrency merchants are now subject to taxation. In addition, the country intends to develop its own digital money.
The Indian government has levied a 30% tax on income derived from the transfer of crypto assets, according to Finance Minister Nirmala Sitaraman’s budget address for 2022-2023. She stated that the number of transactions in virtual digital assets had skyrocketed. Because of the size and frequency of these transactions, it is necessary to establish a specific tax structure. She advocated that any income derived from the transfer of any virtual digital asset be taxed at a rate of 30%.
Taxpayers in the country will not be able to deduct cryptocurrency gains, and crypto losses will not be able to be offset against other income, according to her. Furthermore, any gift of crypto assets will be taxed in the recipient’s hands.
To track the movement of digital assets, the government would collect a 1% tax deducted at source (TDS) on all transfers of crypto assets.
The Minister also mentioned that the government could introduce its central bank digital currency (CBDC) in 2022-2023 during her speech. CBDC, according to Sitaraman, will provide the digital economy a major boost, and the currency will be issued using blockchain and other technology.
Indian officials have suggested many measures prohibiting the use of digital assets in the country over the years.
It’s worth mentioning that a bill to outlaw cryptocurrency isn’t on the table in the current budget speech part. The fact that Indian regulators are taxing crypto income indicates that the country is not outlawing digital assets, but rather that the burgeoning asset class has become legitimate.
Meanwhile, officials have been placing taxes on cryptocurrency in recent years. Thailand recently announced that all crypto dealers in India will be subject to a 15% capital gain tax. Following investor outcry, the Southeast Asian country abandoned its intentions.