No Change in India's Crypto Stance On The 30% Crypto Tax
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TDS On Crypto Taxation
Currently, the country levies a 30% tax on all crypto profits and a 1% tax deducted at source (TDS) on all crypto transactions.. In addition to maintaining the high crypto tax rules, the government also added stipulations that could potentially lead to a fine or jail time for non-compliance with the TDS provision. The fine would be equivalent to the tax liability of the transaction while offenders also risk the possibility of spending three to 84 months in jail for failure to comply.
Regulators originally implemented TDS on all crypto transactions to help determine the total number of Indian citizens that are actively using cryptocurrencies. The government will get its first chance to review this data as Indians file their income tax returns beginning in May.
On Monday, Subhash Chandra Garg, the former Finance Secretary of India, stated that the government needed to provide more clarity on crypto taxes but warned that there might not be any new changes in the 2023 budget. Chandra previously served as the chairman of the committee that drafted the first crypto bill.
No Change in India's Crypto Tax
Indian Finance Minister Nirmala Sitharaman presented the new budget, which announced key changes to income tax rate slabs but failed to mention cryptocurrencies, central bank digital currency (CBDC), or blockchain technology.
Prior to the budget release, many in the Indian crypto industry were hoping that the TDS would be reduced to 0.01%, or at a minimum 0.1%, but the government thought otherwise. Some have warned that keeping the restrictive tax regime in place is a death knell for crypto businesses in the country.