India has tensed cryptocurrency rules by disallowing losses incurred in a particular digital asset to be set off compared to the income from another version of a crypto holding.
As per the views of Pankaj Chaudhary to lawmakers in parliament, the government should not allow tax breaks on infrastructure costs incurred while mining crypto assets as it will not be regaled as the cost of acquisition.
The clarification by the minister is subsequently backed to an industry. The industry slapped that with a high tax rate in the budget unveiled in February.
India’s central bank and the government are skeptical about the sector despite rising trading volumes. They are afraid of using digital currencies for money laundering, terrorist financing, and price volatility.
Furthermore, the crypto asset taxation law will come into force in the financial year starting April 1.
Provisions on the 30% tax will be effective at the beginning of the fiscal year, while those related to the 1% TDS will be applicable from July 1, 2022.Share & like