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The Indian crypto industry demands tax clarity on digital coins!

3 Mins read

Cryptocurrencies prefer targeting the countries like India as they are suitable for breeding and growing. Also, India is one of the most important countries that became a breeding ground for the cryptocurrencies like bitcoin. Due to the large population in India, people are very optimistic and look upon different methods of making money. The same is happening with the cryptocurrencies in the country. People are nowadays investing a lot of money in cryptocurrencies, and therefore, due to the increasing uncertainty from the government, they are facing huge losses. People are scared of investing money in cryptocurrencies because they do not know when to ban digital coins. It is making it difficult for people to make money from the coins, and therefore, they demand clarity on this topic. People want to know if the government will regulate cryptocurrencies or completely ban them.

According to the reports, recently, the head of an Indian industry Association named India tech has written a letter to the country’s finance minister. It wants to know about the taxation which the government is about to impose on cryptocurrencies. The industry association has been a leader in providing services to cryptocurrency exchange platforms in India. Some of the most popular cryptocurrency exchanges like Coinswitch, Kuber, WazirX and Coindcx has been a part of the association. These cryptocurrency exchanges want the whole crypto industry association to send a mail to the finance minister of India so that it can get clarity on tax regulation. They want clarity on the taxation rules and regulations in the future because they do not want to incur huge losses because of the uncertainty of the government. The CEO of the Association is Ramesh Kailasam, and he wrote in the letter that the budget should ideally offer controls on direct taxation. Also, the GST council of the country should provide details on the applicability of taxation. The letter also included a demand for clarifying the taxation policy because it is creating a lot of chaos in the whole cryptocurrency space working in the country.

Moreover, several cryptocurrency exchanges working in India are also accused of evading goods and services tax recently. The directorate general of the country’s goods and services tax intelligence has scrutinised many cryptocurrency exchanges because they are not paying the taxes on time. In the recent raid by DGGI of the country, some cryptocurrency exchanges are not paying their taxes. The total amount recovered from the recent raid on the different cryptocurrency exchanges is about $9.5 million. However, in the defence, exchanges said that the regulations on the taxes that cryptocurrency exchange operations have to pay are not clear. Therefore, they do not know if they have to pay higher taxes or lower Taxes for the operations they are carrying.

Apart from the appeal to disclose the tax policy on cryptocurrencies, the industry association has also suggested something to the country’s finance minister. The letter also says that the country’s finance minister should recognise cryptocurrencies as digital assets and not currencies. Therefore, it also suggests that there should be a tax of about 18% flat on cryptocurrency exchanges. They must pay 18% tax on the total commissions made out of their operations. It is undoubtedly evident that any cryptocurrency exchange could pay a fair amount of tax. Rather than getting a raid from the authorities, paying a flat tax @18% is better.

Even though India is a center for cryptocurrency operations for the people, it does not clarify the rules and regulations for the same. India has no law which can entirely and directly govern the use of crypto assets and any digital tokens. You can know more details from websites like cfds-trader.com. However, recently, the government said that it would bring about a bill that would regulate the use of cryptocurrencies in the country. However, the winter session of Parliament does not include any such bill. The government said that it is rewriting the bill, and some of the assumptions in the bill are still to be understood clearly. Therefore, the bill’s release that will regulate the cryptocurrencies in the country is postponed. It has created a lot of confusion among the cryptocurrency industry, but still, it is spreading like fire.

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