At the end of March, the Indian Government introduced new cryptocurrency rules for companies in the country.
From April 1st, all Indian firms that deal with crypto must report all their cryptocurrency transactions and holdings when they furnish their Income Tax Statements. And one day tax on crypto gains might be introduced. As the Minister of State for Finance and Corporate Affairs Anurag Singh Thakur stated:
“Since income from whatever source derived is included in the Income Tax Act. The gains from cryptocurrency-related services are liable to be included in these rules.”
This really does not come as a surprise. Cryptocurrency is following the same formula as any other new innovative financial service and will likely go through the same development lifecycle.
Paying Tax on Crypto
Governments globally after considering whether and how tax can be charged on Crypto gains. Once India has set out its crypto regulatory regime we will likely see inclusion into tax laws. And crypto, just like any other new financial instrument, will not escape this process. Ultimately, it has the potential to be a positive thing.
The possibility of tax income also helps the regulator self-regulate to some degree. So much news on the internet about the government banning crypto trading in India can be seen. But they couldn’t ban it so they will put strict regulations in Future.
There is no surprise in crypto eventually falling under taxation regimes like many other financial instruments before it.
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