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Govt works on tax framework to regulate cryptocurrency gains; Read here

Experts have pointed out that 30% tax would be levied if the returns from cryptocurrency trading were classified as business income.

New Delhi: The Indian Government is looking to come up with income tax laws regarding cryptocurrencies with some changes which can be a part of the budget next year, a top official informed.

In an interview with PTI, Tarun Bajaj, Revenue secretary has said that in terms of income tax, people are already paying capital gains tax on the income from cryptocurrency, and in respect of goods and services tax (GST) also the law is “very clear” that the rate would be applicable as those in case of other services.

As per reports, Tax experts are divided as to whether the income from crypto assets is capital gains or business income. They have said that tax on cryptocurrencies will also depend on how the government defines the asset.

Crypto in India

Experts have pointed out that 30% tax would be levied if the returns from cryptocurrency trading were classified as business income.

“We will take a call. I understand that already people are paying taxes on it. Now that it has really grown a lot, we will see whether we can actually bring in some changes in law position or not. But that would be a budget activity. We are already nearing the budget, we have to look at that point of time,” he further said

Delivering the keynote address at The Sydney Dialogue, PM Modi said the Digital Age is changing everything around us. “It has redefined politics, economy and society,” he added. “It is raising new questions on sovereignty, governance, ethics, law, rights and security.

Crypto trading

It is reshaping international competition, power and leadership,” the Prime Minister said while speaking on the theme of “India’s Technology: Evolution and Revolution”.

PM Modi said “Take crypto-currency or bitcoin for example. It is important that all democratic nations work together on this and ensure it does not end up in wrong hands, which can spoil our youth,”