India acts tough on Cryptocurrency Income tax
Income tax at 30 % , Loss not allowed to carry forward or set off . Tax on cryptocurrency turnover
By: PLAN N PROGRESS
In the budget speech on 01.02.2022, Indian Finance Minister Ms Nirmala Sitharaman announced that India is going to TAX INCOME FROM THE CRYPTOCURRENCIES AT A FLAT RATE OF 30%. No deduction is allowed except the cost of acquisition. Further, TDS of 1% will be collected on the amount of transaction in virtual currencies. Receiver of gifts of virtual currency will be taxed.
The Finance bill 2022 was passed by the Indian parliament yesterday and new section 115bbh has been introduced in the Income tax act incorporating taxes on cryptocurrency. The new inclusion clause is tougher than thought of before as it will not allow any deduction in respect of any expenditure (other than cost of acquisition)
The legality of cryptocurrency trade is not yet spelt out by the government and the government has brought tough tax laws making its trade less attractive to traders and investors.
In spite of such adverse investment climate for cryptocurrency business in India, it is guessed that more than 20 million Indians have invested in such risky accounts. We have to see what will happen to the Indian market in coming months with the introduction of the new law.
PLAN N PROGRESS