India’s encryption tax policy proposal will be submitted to parliament on March 24

A cryptocurrency tax proposal proposed by Indian Finance Minister Nirmala sitharaman may soon become law, as the lower house of Parliament is scheduled to consider the legislation on Thursday.
According to Wednesday’s report, sitharaman will submit the appropriation and finance bill for 2022 to the lower house on Thursday. The financial act includes an amendment to the country’s income tax law, which identifies “virtual digital assets” (including cryptocurrencies and non-homogeneous tokens) as taxable investments.
India’s encryption tax policy proposal will be submitted to parliament on March 24
In February this year, the Indian Finance Minister announced for the first time an amendment to the existing law, proposing a 30% tax on digital asset transactions. Sitharaman added at the time that the losses arising from encrypted transactions were likely not eligible to offset the tax from any profits. In addition, no deductions “other than acquisition costs” are allowed in the calculation of income.
According to this tax calculation method, traders may need to pay 30% tax on the gains of cryptocurrencies such as bitcoin and Ethereum, but if the currency price falls, the loss will not be considered. According to cointegraph, many experts criticized the proposal, which will take effect on April 1 after discussion on Thursday.
The crypto tax policy appears to be a legislative replacement for the previously proposed bill banning India’s “private cryptocurrency”. According to the list of affairs recently released by the Indian house of Commons, the Indian parliament has not arranged to hear the discussion on the cryptocurrency bill during the budget meeting that ended on April 8.
India, with a population of about 1.4 billion, has not yet established a specific regulatory framework for digital assets after the Supreme Court of the country decided to lift the ban of the Reserve Bank of India on banks’ transactions with encryption companies in 2020. The tax proposal currently under consideration seems to be the closest cryptocurrency market has ever been to gaining some legal status in India.