Crypto tax amendment approved by Lok Sabha, preparing to come into force from April 1

The taxation of Virtual Digital Assets (VDA) or “crypto tax” proposed in the Union Budget 2022-23 is set to come into effect from April 1, as the Lok Sabha on Friday passed the Finance Bill, 2022.

The Lok Sabha also passed amendments introduced in the Finance Bill, 2022 with regard to clarifications on the taxation of virtual digital assets.

Section 115BBH of the Bill deals with tax on virtual digital assets. Clause (2)(b) prevents loss on business cryptocurrency From winding up of assets against income under “any other provision” of the IT Act.

As per the amendment, the word “other” has been omitted. Under the amended law, losses from crypto assets also cannot be set off against gains in crypto assets.

“The proposed 30 percent tax whether crypto-assets are capital assets or not will be detrimental to the investor growth that the industry is seeing so far. The move will leave day-traders unable to save on taxes, even though they are doing isn’t currently in the income tax bracket,” said Nischal Shetty, founder and CEO of the crypto exchange wazirx,

“Furthermore, not allowing investors to offset losses from gains from one crypto trading pair to another would further hinder crypto participation and accelerate the growth of the industry,” he said.

Shetty said the new rule would not give the government the desired results.

“This could result in widespread participation on Indian exchanges that comply with KYC norms and increase capital outflows to foreign exchanges or those that are not KYC compliant. This is not conducive to the government or the crypto ecosystem. India , “They said.

Cryptocurrency is an unregulated digital currency, not legal tender and subject to market risk. The information in this article is not intended to be financial advice, trading advice or any other advice or a recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any alleged recommendation, forecast or any other information contained in the article.

Source link

Sharing Is Caring:

Leave a Comment