According to The Economic Times, India’s income tax authority is monitoring crypto investors and traders to demand income tax from them. This was reported by sources close to the government.
The country’s tax department monitored cryptocurrency transactions that were conducted using bank accounts. This continued until 2018, when the Reserve Bank of India banned cryptocurrency. However, the ban was lifted in March, which delighted Indian crypto enthusiasts.
“The tax authority can also monitor earnings of cryptocurrency investors registered through KYC/AML compliant exchanges like CoinDCX and through national identity documents such as the PAN card,” — поделился CEO CoinDCX в Мумбаи Сумит Гупта.
Experts believe that the tax will be equal to 30% of income, and are advised to declare income from operations with cryptocurrencies as capital gains, similar to shares.
However, Amit Maheshwari, a partner at the consulting company AMK Global, believes that regular cryptocurrency trading will be defined as a speculative business with appropriate tax rates. Rare and irregular bitcoin deals can be considered capital gains.
At the moment, Indian legislation has not decided on the classification of the cryptocurrency tax. Now, when filing an Income Tax declaration, income from the sale of cryptocurrencies is categorized as “Other Sources”.