Consideration of changes in the law: preparation of tax on earnings from crypto

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  • The government could impose a 30 to 40% tax on cryptocurrencies, the budget announced
The central government is preparing to impose a tax on earnings from investing in cryptocurrencies. A change in the income tax law is being considered for that. The government may include the rules in the next budget. Revenue Secretary Tarun Bajaj said some people were already paying capital gains tax on income from cryptocurrencies.                                                                                                                                                                                                                                                                                                                                                                          The rate of GST is also clear. How much GST will be charged on which service? We will see if the status quo can be changed. However, it will be done within the budget. There may be provision for TCS (Tax Collected at Source) for crypto trading.                                                                                                                                                                                                                                                                                                  If you want to earn money, you have to pay taxes. Some consider it an asset and are paying capital gains tax on it. On classifying people involved in cryptocurrency trading as facilitators, brokerages and trading platforms and imposing GST, Bajaj said other services would already have similar issues. The law is clear. If one is taking brokerage charges with the help of a broker, then GST has to be paid.                                                                                                                                                                                                                                                                    Bill possible in winter session of Parliament, misleading claims to be curbed
Amid growing concerns over cryptocurrencies, the central government may introduce a bill in the winter session of parliament starting November 29. Such currencies are used to lure investors with misleading claims. Advertisements claiming a hefty return on investment in cryptocurrencies are on the rise. There are currently no rules or restrictions on cryptocurrencies. Prime Minister Narendra Modi had recently convened a meeting on the issue and signaled strict rules.                                                                                                                                                                                                                                                                       Benefits of coming under the scope of capital gains taxClarification of tax on crypto will boost investor confidence.
Taxes will benefit from indexation, so there will be tax savings.
In case of capital loss, it can be set off with capital gain as per income tax rules.                                                                                                                                                                                                                                                                                  A separate law will have to be enacted to control it
Cryptocurrency is not illegal in the country, it is unregulated. The inclusion of capital gains tax will not change the unregulated status. It will have to be legislated separately. The imposition of capital gains tax will definitely remove the uncertainty about the tax on it. > Kirti Joshi, Chartered Accountant                                                                                                                                                                                                                                                                                                                                                                                                                                    Tax rules on crypto in other countries
US: 0% to 37% Capital Gains Tax
Australia: Capital Gains Tax on 50% of Profits
Netherlands: 30% wealth tax
Britain: Capital Gains Tax

See also  જિયો પોલિટિકલ ક્રાઇસિસના પગલે સોનામાં ઝડપી તેજી, વૈશ્વિક 1900 ડોલર પહોંચ્યું, ચાંદી 24 ડોલર ક્રોસ