The Income Tax Department of India has been reported to be looking at taxing crypto traders and exchanges in the near future, and experts believe that investors can be confident.
As per the report of ET Now, the tax department, which is part of India’s Ministry of Finance, has indicated an interest in taxing crypto gains through exchanges and trade. However, sources say that the decision will not allow cryptocurrencies to be considered a market position.
In this regard, the report’s initial findings suggest that the Indian administration believes all businesses that generate profits from cryptocurrency should be taxed. A soon-to-be-released law proposal from the cabinet will give further clarification on this decision.
The Reserve Bank of India (RBI) released a document on January 25th that analyzed the applications of a digital form of money that is fiat.
The Government is able to see only two options to implement cryptocurrency: adoption or a complete ban and complete ban; the RBI is planning to introduce their own variant of CBDC in the event that “there is a need.”
Crypto Enthusiast and CEO of Indian Crypto Exchange Wazirx Nischal Shetty indicated towards a unified Goods and Service tax for Digital currency and appreciated the Indian government efforts to enhance and create a framework for the cryptocurrency.
India’s Central Bank RBI previously had taken strict measures on entities involved in Crypto trading until the Government’s decision to revoke RBI’s ban on digital currencies. India has one of the highest numbers of users engaged in cryptocurrencies trading and investment. A favorable law and tax infrastructure would help in bringing crypto to the mainstream.
Gargi Sinha is working as Senior Journalist at Confea. She has completed her Masters in Journalism from Delhi University. She has interest in crypto and blockchain technology.