The lower house of the Indian Parliament approved the “Finance Act” with controversial amendments regarding the taxation of digital assets. The new rules will come into effect on April 1 , according to The Indian Express.
Earlier, the Ministry of Finance of the country determined that when calculating taxes, traders will not be able to compensate for losses in one digital asset with profit in another. The law also provides for 30% tax on transactions with crypto-currencies and 1% fees under TDS.
Under Indian law, income tax is levied at the source of income. This means that when making a taxable cryptocurrency transaction, the user will be required to deduct tax (TDS) from the payment amount based on the established rate and independently transfer these fees to the state.
Industry participants in India opposed amendments proposed by the Ministry of Finance, hoping to soften the provisions on TDS and the tax on crypto transactions. However, Parliament did not take into account their opinion.
30Heartfelt thanks and my admiration for you on raising the 1 % TDS issue and explaining it so plainly
Thank you @mpriteshpandey ????#ReduceCryptoTax #UnfairCryptoTax pic.twitter.com/sv2FjgxKQU
— Nischal (Shardeum ) ⚡️ (@NischalShetty) March ,
According to CoinDesk, industry players are now considering going to the Supreme Court. Tax lawyer Rajat Mittal stressed that the new rules “make it almost impossible” for daily trading and exchanges to operate in India.
In February 2022 of the year, the head of the Reserve Bank of India, Shaktikanta Das, warned investors against investing in cryptocurrency.
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