In just a week’s time, new regulations will come into effect forcing Indian cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. traders to pay the hefty tax.
India’s Parliament on Friday passed a cryptocurrency tax law that will impose a 30% capital capital is most commonly defined as the large sum of money you would use to invest. gains gains refer to an increase in value or profit. tax on cryptocurrency transactions, reported CoinDesk .
Despite efforts by the country’s cryptocurrency enthusiast community to slow down the bill, the new regulation will come into effect on April 1st. . In addition to the high capital gains tax, the legislation also imposes a 1% tax deducted at source (TDS) on all digital asset transactions, regardless of whether it involves gain or loss, as well as crypto gift taxes, without the possibility of deduction for losses.
As previously reported DiarioBitcoin the local cryptocurrency industry had fought against the bill after it was first proposed in February. A petition on the platform a place to buy, sell and store cryptocurrency Change.org collected more than 100,000 signatures in an effort to convince lawmakers to revise the regulations. There was also a active campaign in Twitter to stop the project.
The law was passed despite rejection
The approval comes after a group of industry executives said it is considering a challenge to India’s Supreme Court to implement changes to the law; although at this point it is uncertain whether there could actually be reform.
“ We could see changes to the fine print, but we don’t expect any changes to major policies. “said an industry executive to CoinDesk in a report published on Monday. In the latest report, Supreme Court tax adviser Rajat Mittal, who advises crypto firms, echoed comments about little hope for a change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. at this point.
The government has not accepted any suggestions from the crypto industry to ease taxes on cryptocurrencies, but has in fact tightened tax rules making them tougher and perhaps almost impossible for day traders and exchanges to conduct business in India.
India’s Finance Minister Nirmala Sitharaman had announced the stiff tax policy proposal earlier this year. Initially, the proposals generated some excitement, as well as confusion, as there was speculation that the country might be recognizing cryptocurrencies as an asset in order to tax them.
Sin embargo, el gobierno pronto aclaró que las monedas digitales siguen sin estar reguladas en India. The fact that they are now taxable does not mean that digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets are legal in the Asian country.
According to CoinDesk Some members of parliament who opposed the proposal reacted strongly to Friday’s approval. They denounced the lack of clarity in the definition of cryptocurrencies in the bill, with several MPs saying that taxes on cryptocurrencies “ will end the industry “, according to the media.
More crypto-taxes on the horizon?
India’s plans to implement strict tax policies on cryptocurrencies might not be over. More recent reports have advanced that the Indian government is also looking into taxing cryptocurrencies as if they were lottery winnings .
According to the news agencyPress Trust a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. of IndiaThe new law, seeks to classify digital currencies under the GST (goods and services) indirect taxation law. At present, the crypto services provided by the exchanges Commercial banks are classified as financial services, tax 18% GST on the services they provide to users, but this could rise to 28%, according to reports.
Although this provision did not appear in the last bill passed, it is not excluded that it will continue to figure among the government’s plans.
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Article by Hannah Estefania Perez / DiarioBitcoin
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