The Indian Finance Minister’s Cryptocurrency Tax Proposal, Nirmala Sitharaman, it may be closer to becoming law, as the country’s lower house of parliament is scheduled to review the legislation next Thursday, March 24.
According to a Wednesday post, Sitharaman will present the appropriations and finance bills for 2022 in the Lok Sabha, the lower house of Parliament, on March 24. The financial bill includes 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, the amendment to existing laws in India proposed a 30% tax on digital asset transactions. Sitharaman then added that losses from cryptocurrency trading likely could not be used to offset capital gains taxes. In addition, no deductions would be allowed when calculating income “except the cost of acquisition.”
Based on this tax calculation, traders would likely have to pay 30% tax on profits made from cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), but would not account for losses if the price of the coins fell. Cointelegraph reported that many experts railed against the proposal, which is likely to go into effect on April 1 after Thursday’s debate.
If you made a loss in Bitcoin, you cannot set it off with a profit in Ethereum. The new taxation law was clarified in parliament today.
My suggestion is to sell everything you have before March 31, 2022. And start fresh from April 2022.
Cost of mining cannot be deducted too! pic.twitter.com/pfSGPAOFBO
— Naimish Sanghvi (@ThatNaimish) March 21, 2022
If you have had losses in Bitcoin, you cannot compensate them with gains in Ethereum. The new tax law has been clarified today in parliament.
My suggestion is that you sell everything you have before March 31, 2022. And start again from April 2022.
The cost of mining cannot be deducted either!
The Finance Bill 2022 will be discussed & passed soon.
We urge the government to reconsider these new unfair tax policies & hope they make amendments to tax it like technology, not gambling. #reducecryptotax #ReduceCryptoTaxDay49
— Aditya Singh (@CryptooAdy) March 23, 2022
The 2022 finance bill will be debated and passed soon.
We urge the government to reconsider these new unfair tax policies and hope they introduce amendments to tax technology, not gambling.
The tax policy on cryptocurrencies is apparently a legislative replacement for a previously proposed bill that would have banned “private cryptocurrencies” in India. According to the latest list of issues published by the Lok Sabha, the Indian parliament is not scheduled to debate the cryptocurrency bill during its budget session, which ends on April 8.
With a population of approximately 1.4 billion, India has not established 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 the operations of digital assets. banks with cryptocurrency companies. The tax proposal being studied appears to be the closest cryptocurrency markets have come to gaining some form of legal status in India.
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