In India, cryptocurrency trading may soon be subject to taxation, as the Ministry of Finance has reportedly formed a new committee to investigate whether crypto-trading profits should be taxed. The news comes as the country waits for the introduction of an official Cryptocurrency Bill to be introduced in Parliament during the forthcoming Winter Session. While cryptocurrency trading is gaining popularity in India, there are currently no rules in place to regulate it.
Inc42 stated on September 22 that this new panel constituted by the finance ministry has been given four weeks.
After the stipulated time period has passed, the panel will have to decide whether money earned from cryptocurrency trading may be taxed as capital gains or must be classed under a newly created tax category.
This committee’s taxation examination of cryptocurrency trading-based income is expected to be included in the Cryptocurrency Bill’s final draft.
The bitcoin market in India has been growing in recent months. According to a survey issued earlier this month, bitcoin adoption increased by 880 percent in India, Pakistan, Ukraine, and Vietnam.
According to a TechStory study, over seven million Indians have invested a total of $1 billion (approximately Rs. 7,380 crores) in cryptocurrencies.
Nirmala Sitharaman, India’s finance minister, has been ignoring the draft formulation of the Cryptocurrency Bill, despite the rising crypto culture.
Meanwhile, by the end of 2021, the Reserve Bank of India (RBI) plans to launch its first official digital currency as a regulated “central bank digital currency (CBDC).”
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