A report by Economic Times revealed that Bitcoin investors in India may begin to pay tax on all their crypto income. According to the Economic Times report, two sources familiar with the plans confirmed the news. For now, experts expect that the tax on digital assets could be up to 30%. The report further said that the Indian tax regulators have not decided on the taxation rate for cryptocurrencies.
A report by InsideBitcoin noted that the Indian Income Tax department is keeping watch on crypto investors by tracking banking channels.
The CEO of CoinDCX crypto exchange, Sumit Gupta commented on the rumored taxation:
“The tax authority can also monitor earnings of cryptocurrency investors registered through KYC/AML compliant exchanges like CoinDCX and through national identity documents such as the PAN card.”
AMK Global’s partner Amit Maheshwari also commented on the taxation. Maheshwari said that regular tax rates may be applied to Bitcoin trading.
In India, crypto investors file their digital assets under the ‘Income from Other Sources’ category. With the implementation of a tax on crypto income, there would be more clarity on digital assets in the region.
InsideBitcoins mentioned that there were rumors in September that the Indian government was going to ban crypto trading. The report included the consequences for anyone who violates the ban law. Violators would face penalties such as fines and a jail term.
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