A proposed crypto tax policy, included in a Finance Bill as presented by India’s Minister of Finance, Nirmala Sitharaman is bound for approval by the Lok Sabha, the lower parliament of India this week. The bill consists of laws that will guard against regulating virtual asset trades in India.
While it has not been banned outrightly, there have been several contentions as it pertains to legalizing cryptocurrency and its regulation in India. Many recommendations, as well as bills and laws, have been passed, yet the government of India has not adopted the asset class as a legal means of transacting.
In a report in February by CryptoMarketsBeat, the chief of the Reserve Bank of India (RBI), Rabi Sankar made some recommendations to the government of India about crypto, advising that the virtual currency should be banned, and according to him, that will be the best option for India at large.
The proposed Finance Bill that will be presented to the lower house by Minister Nirmala Sitharaman is one of such amendments that have been made on digital assets. While it is not legalized yet, the bill suggests that cryptocurrencies, as well as non-fungible tokens (NFTs), should be taxed.
The government of India has maintained a stance ever since that, while cryptocurrency is taxed, it is still unregulated.
The amendment to the Finance bill proposal that captures the crypto clause provides that, a sum of 30% on Bitcoin (BTC) and Ethereum (ETH) transactions income will be taxed, a 1% tax deducted at source (TDS), and cases whereby losses are incurred by users for reasons owing to decline in the market price of the digital asset or under any circumstances, there are no provisions for tax gains.
The proposed law is expected to be in full effect from the 1st of April after a decision must have been made in the Lok Sabha sitting before then.
There have been several reactions as to the provisions of these proposed laws, some accolades, others spite, a trend that shows there is still differing opinion even amongst crypto natives.