Indian Finance Minister Nirmala Sitharaman has announced the country will enforce a 30% tax on any income from the transfer of virtual digital assets.
According to a report by CoinDesk, India has announced a first-of-its kind measure for the nation to impose a flat tax on cryptoasset income in response to the massive increase in digital asset transactions.
Speaking in the Indian budget speech which lasted for more than two hours, Sitharaman said,
There has been a phenomenal increase in transaction in virtual digital assets. The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime.
The Finance Minister also announced the country’s intention to issue a digital rupee within the next two years. According to Sitharaman, the central bank digital currency (CBDC) will be issued using “blockchain and other technologies,” and will provide a “big boost to the economy.”
Sitharaman was asked about taxing crypto transactions in lieu of other government regulations on the industry. She claimed that a paper had been circulated to generate inputs on regulation, but that the government would not wait to begin taxing people earning a profit on crypto.
While the Sitharaman’s comments are still far from legalizing cryptoassets in the country, Nischal Shetty, co-founder and CEO of crypto exchange WazirX, said India was “finally on the path to legitimizing the crypto sector.”
Shetty commended the government for moving to launch a digital rupee and said it would pave the way for greater crypto adoption. He noted the importance of clarity on crypto taxation as a massive development that would helping the growing ecosystem of digital assets in India.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Photo by user EivindPedersen via Pixabay.com