Indian crypto industry seeks tax clarity in Union Budget 2022-23 – Taxes

An Indian industry body has written to the country's finance minister seeking clarity on taxation of cryptocurrencies in the Union Budget 2022-23. “The Budget should ideally provide coherent rules on direct taxation and the GST Council should detail the applicability of taxation, otherwise there will be confusion.”

The industry wants clarity in crypto tax laws in the Union Budget 2022-23

The Indian industry association Indiatech has written to the country's finance minister, Nirmala Sitharaman, regarding the taxation of cryptocurrencies. The association represents the major cryptocurrency exchanges in India, including Coinswitch Kuber, Wazirx and Coindcx.

In its letter, the association sought clarity from the finance minister regarding crypto taxation in the Union Budget 2022-23. The industry body also called on the government to amend existing tax laws to include crypto assets. Indiatech President and CEO Rameesh Kailasam told Ettech:

The Budget should ideally contain coherent rules for direct taxation and the GST Council should detail the applicability of taxation, otherwise confusion will arise.

Some cryptocurrency exchanges have been accused of evading Goods and Services Tax (GST). India's Directorate General of Goods and Services Tax Information (DGGI) is investigating several crypto firms for tax evasion.

The DGGI recently ambushed major cryptocurrency exchanges and discovered “massive” GST evasion. The raid reportedly uncovered tax evasion worth about 70 billion rupees ($9.4 million). Crypto exchanges blamed confusion over tax laws as the reason for not paying taxes properly.

Indiatech has urged Finance Minister Nirmala Sitharaman to recognize cryptocurrencies as digital assets and not currencies. The industry body has also recommended charging a flat 18% GST only on the commissions of the exchanges.

India still does not have a law that directly regulates crypto assets. A bill on cryptocurrencies was due to be considered in the winter session of Parliament but was not taken up and the Indian government is now reportedly revising the bill.

Do you think the government will mention cryptocurrency in the Union Budget this year? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the interface between economics and cryptography.

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