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Indian government may double tax on crypto, report says

Legal

forkast.news 12 January 2022 08:40, UTC
  
Reading time: ~2 m

The Indian government is mulling the taxation of cryptocurrencies as business income, in a decision which could double the tax burden on investors, according to a local report.  

Fast facts

  • Currently, crypto earnings are taxed as capital gains, which stand at 20%, while business income rates reach as high as 42%. 
  • Taxing each crypto transaction rather than a single levy upon liquidation of assets is also under consideration, according to two senior tax advisors involved in government discussions cited by the Economic Times.  
  • Additionally, India may levy an 18% Goods and Services Tax (GST) on crypto investors themselves, if exchanges pass on this tax burden.
  • The government, which currently does not collect data from crypto investors, may also amend the Income Tax Act to mandate crypto gains disclosures. 
  • Tax authorities recovered around US$9.3 million from Indian crypto exchanges for alleged tax evasion last week, to which some exchanges blamed the ambiguities in existing tax laws. 
  • Crypto tax implications are expected to be on the table in the upcoming February budget session. 

   Source
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