There is bad news for people in India who have invested in cryptocurrencies like Bitcoin or Ethereum right now. Budget 2022 talks about 30 percent tax on cryptocurrencies. Now the government has informed that the investors may get another shock.
Union Finance Minister Nirmala Sitharaman in Budget 2022 said 30 percent tax on income from cryptocurrencies. This time the government is thinking of imposing 28 percent GST on crypto. It is learned that this decision is likely to be taken in the next meeting of the GST Council.
The government is considering putting digital currency in the same category as lotteries, casino races and gambling. However, the date of the GST Council meeting has not been announced yet. Also new section 115BBH has been added to Income Tax to levy tax on virtual digital assets.
The finance minister also said that taxing cryptocurrencies does not mean shutting them down in India. Deduction of 1 percent TDS on cryptocurrency transactions above a certain amount is also being discussed, apart from GSt, income tax. Also, gifting cryptocurrency to someone will also be tax deductible.
In early April, Finance Minister Nirmala Sitharaman, in the United States, said that the adoption of cryptocurrencies was growing rapidly around the world. In this case it requires global control. Through this it is possible to prevent any kind of money laundering. The finance minister also said that terrorists are being financed through cryptocurrency and this needs to be stopped immediately.