The punitive crypto tax regime forming in India is already shrinking the industry

  • India has put in place a regressive taxation policy for virtual digital assets (VDAs) since April 1, which has caused the cryptocurrency industry to contract.
  • The government is reportedly considering 28% goods and services tax on virtual coins.
  • This is at par with the levy on casinos, betting, and lottery.
  • The country taxes up to 30% on earnings from the transfer of crypto asset transactions and non-fungible tokens and deducts 1% as tax at the source of income above a certain threshold.
  • Gifts in crypto and digital assets are also taxed.
  • Since this tax regime came into effect last month, trading volumes on Indias major cryptocurrency exchanges have slumped significantly.
  • WazirX saw a drop of 72%, ZebPay was down 59%, CoinDCX 52%, and BitBns 41%, according to data on CoinMarketCap and Nomics, a data firm.
  • This has sparked resentment in the cryptocurrency community.
2021 06 29T130534Z 1944952357 RC2BAO94B5AA RTRMADP 3 CRYPTO CURRENCY e1652161786705 The punitive crypto tax regime forming in India is already shrinking the industry
The punitive crypto tax regime forming in India is already shrinking the industry 2

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