A crypto tax proposal by India’s Finance Minister Nirmala Sitharaman may be on the verge of becoming law as the country’s lower house is scheduled to consider the bill on Thursday.
Sitharaman will be, according to a release Wednesday introduce Appropriation and financial bills for 2022 to the Lok Sabha – the lower house of Parliament – on Thursday. The Finance Law contains an amendment to the country’s income tax laws that identifies “virtual digital assets” — including cryptocurrencies and non-fungible tokens — as taxable investments.
First announced by the finance minister In February, changing existing Indian laws proposed a 30 percent tax targeting digital asset transactions. At the time, Sitharaman added that losses from crypto trading would most likely not qualify for offsetting taxes on profits. In addition, no deductions are permitted when calculating the income “apart from the acquisition costs”.
According to this tax calculation, traders would likely have to pay 30% tax on profits from cryptocurrencies including bitcoin (Bitcoin) and ether (ETH), but not taking into account losses should the price of the coins fall. Cointelegraph reported Many experts criticized the proposalwhich is expected to come into force on April 1 after Thursday’s discussion.
If you’ve made losses in Bitcoin, you can’t make them up with profits in Ethereum. The new tax law was clarified today in Parliament.
My suggestion is to sell everything you have before March 31, 2022. And starting again from April 2022.
Mining costs cannot be deducted either! pic.twitter.com/pfSGPAOFBO
— Naimish Sanghvi (@ThatNaimish) March 21, 2022
The Finance Act 2022 will be discussed and passed shortly.
— Aditya Singh (@CryptooAdy) March 23, 2022
Tax policy for crypto is seemingly legislation Replacement for a previously proposed bill that would have banned “private cryptocurrencies” in India. According to the most recently released list of Lok Sabha’s dealings, India’s Parliament is not planned to hear a discussion on the crypto bill during its budget session, which ends on April 8.
With a population of around 1.4 billion, India has failed to put in place a concrete regulatory framework for digital assets following the country’s Supreme Court decision in 2020 to lift a ban by the Reserve Bank of India on banks trading with crypto firms. The tax proposal under consideration appears to be the closest thing the crypto markets have to gaining some sort of legal status in India.
https://cointelegraph.com/news/proposal-for-crypto-tax-policy-in-india-will-go-to-parliament-on-march-24 The proposal for a crypto tax policy in India will be presented to Parliament on March 24