homevideos Newscryptocurrency News30% tax on digital assets from April; experts discuss impact on the sector
30% tax on digital assets from April; experts discuss impact on the sector
The new fiscal brings with it India's latest taxation laws on cryptocurrencies and other digital assets. These new regulations have brought a whole set of uncertainties and concerns to the 100 million investors in the country. So what toll will these regulations have on your journey to the moon? To discuss this CNBC-TV18’s Manisha Gupta spoke to a group of experts
The new fiscal brings with it India's latest taxation laws on cryptocurrencies and other digital assets. These new regulations have brought a whole set of uncertainties and concerns to the 100 million investors in the country. So what toll will these regulations have on your journey to the moon? For starters, all profits made on cryptocurrencies will be taxed at a flat rate of 30 percent.
The Finance Bill 2022 that included crypto tax amendments also mandates that a 1 percent tax will be deducted at the source on all transactions, irrespective of a loss or profit. Experts speculate that this TDS is likely to curb speculative trade and could deplete the volume of crypto trade in India when it comes into effect on July 1st.
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However it would net the government $100 million in additional income to the government according to top brass of Indian crypto exchanges. Of course this depends on trading volumes remaining steady.
The markets biggest concern -- however -- is last week's clarification that investors will not be allowed to adjust losses in one crypto asset against the profit earned from another.
The lack of a tax bracket and the lack of clarity on the definition of crypto mining as a good or a service has further added to uncertainties. So how will the crypto markets be impacted in the new fiscal and will India’s crypto ride lose momentum? To discuss this CNBC-TV18’s Manisha Gupta spoke to Siddharth Sogani, founder of Crebaco; Abhinav Soomaney Senior Associate at Neumeister and Associates who specialises in crypto taxation; and Nischal Shetty, Founder and Chief Executive at Wazir-x.
Watch video for more.
First Published: Mar 29, 2022 5:29 PM IST
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