India seeking to tax crypto ecosystem and trades

According to a tweet posted on Monday by ET Now, the Indian government is anticipating taxing crypto trades and ecosystem in the nation.

The tax department is in favor of taxing crypto trades and exchanges and the government believes that any task that results in income must pay tax.

The development comes in as the cabinet will soon consider the draft bill on cryptos. It is perceived that the government may allow using blockchain technology and may consider cryptos as a tradable asset class without banning it.

Nirmala Sitharaman, the Finance Minister previously made her decision on crypto clear, mentioning that the government wasn’t wishing to close all alternatives and that people will be provided proper windows to experiment with bitcoins, blockchain and crypto.

An official said that the taxation of crypto would not give any official recognition to it. He added that they are approaching crypto with the principle that any task that produces income must pay tax.

Meanwhile, R Gandhi, ex-deputy governor of RBI made a case for the taxation of crypto transactions based on payment channels.

Last week Gandhi said that cryptos should be paid for through normal payment channels. If they aren’t, then they should be considered as mined and capital profits tax must be imposed. That is like voluntary disclosure. The dealings should be fully monitored via a repository.

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