- The current tax on cryptocurrency transactions on Indian exchanges is 18%.
- A receiver will be obligated to pay GST on a reverse charge basis.
- A 1% TDS for transactions above $129 will take effect on July 1, 2022.
Despite concerns about the lack of comprehensive data protection regulations, India expects that a ban will allow the Reserve Bank of India, the country’s central bank, to acquire control over digital money.
If the government’s plan to “regulate” virtual money is passed by parliament, India may outlaw the usage of all cryptocurrencies, with a few exceptions. The central bank intends to launch its cryptocurrency. People who “mine, buy, sell, trade-in, issue or transfer” digital money would face a two-year sentence under the bill.
According to crypto businesses, the TDS (Tax Driven System) mechanism is used to combat tax evasion and track transactions. It is also the most significant danger to future crypto regulation.
The government’s clarification will have little impact on the debates to launch legal action against the …