The Central Board of Direct Taxes (CBDT) is preparing to release a list of frequently asked questions (FAQs) surrounding the crypto tax system introduced this year in India. According to Sangeeta Singh, president of CBDT, these FAQs will be released around July 1, which is another twenty-two days at the time of writing. Singh was speaking at an event organized by the Income Tax Department in Delhi when she made these statements. The purpose of publishing these rules is to provide clarity about the country’s crypto community.
The CBDT is India’s top-level body that governs the country’s overall tax regime. It belongs to the Ministry of Finance of India.
“We are working on the FAQ to make it more clear electronic moneyand we will release it by July 1st,” Singh, a 1986 Indian Internal Revenue Service (IRS) employee, said in his statement.
Cryptocurrency gains in India were eligible for tax deduction this April.
Although a 30 percent tax has been levied on profits generated through cryptocurrency trading in India, the law also mandates one percent TDS per Cryptocurrency trading.
Experts, players and community members in the Indian crypto industry have asked the government to review the tax bracket due to the novelty of the crypto sector.
Will India witness a BIG brain drain due to crypto tax that will impact Web3 Startups/Innovators? # Web3
– SantoshPanda.eth | Founder rights (@santoshpanda) March 22, 2022
After the publication of these crypto laws, research firm Crebaco has report that the volume of crypto trading in India has dropped by up to 70% since the tax law came into effect.
India has been rolling out new rules to keep crypto transactions Digital Assetstraceable.
The government aims to limit the potential misuse of digital assets for money laundering and terrorist financing.
Currently, the country is waiting for regulatory frameworks and clarity on classification around virtual digital assets (VDA).
Meanwhile, Asia is witnessing constant growth in the crypto sector, especially from wealthy investors from countries such as India, Vietnam, China, Indonesia, and Japan. , Malaysia, Singapore and Thailand, a report of Accenture said this week.
According to this survey, India contributes seven percent on the graph representing the percentage of Cryptocurrencies and NFT hold in Asia. This puts India ahead of Singapore, Japan and Vietnam – reflecting six percent, three percent and four percent digital asset holdings on Accenture’s survey graph.
