The Central Board of Direct Taxes (CBDT) is gearing-up to release a list of frequently asked questions (FAQs) around the crypto tax system introduce this year in India.
As per Sangeeta Singh, the chairperson of CBDT, these FAQs will be release around 1st July 2022, that is twenty-two days away at the time of writing.
Sangeeta Singh was speaking at an event host by Income Tax Department in Delhi when she made these statements.
The aim of publishing these rules is to provide clarity on the crypto community of the country.
The CBDT is India’s apex authority governing the country’s overall tax regime.
It falls under India’s finance ministry.
Sangeeta Singh Said :
“We are working on the FAQs for clarity on cryptos, and we will release it before July 1,”.
Crypto profits in India have made eligible for tax deductions this April.
While a 30% tax has levied on profits generate via crypto trading in India, the laws also mandate one percent TDS on each crypto transaction.
Crypto industry experts, players, and community members of India have asking the government to re-consider the tax bracket given the newness of the crypto sector.
Following the announcement of these crypto laws, research firm Crebaco had report that the volume of cryptocurrency trading in India nosedived by up to 70% since the tax laws came into effect.
India has introducing new rules in order to keep transactions of virtual digital assets, traceable.
The government aims to curb potential misuses of digital assets for money laundering and terror financing.
For now, the nation awaits legal frameworks and classification clarity around virtual digital assets (VDA).
Asia is witnessing a constant growth in the crypto sector, especially from affluent investors from the nations of India, Vietnam, China, Indonesia, Japan, Malaysia, Singapore, and Thailand, a report by Accenture said this week.
India contributes by 7% on the chart representing the percentages of crypto and NFT holdings in Asia.
This brings India ahead of Singapore, Japan, and Vietnam, that reflect 6%, 3%, and 4% in digital asset holdings on the Accenture survey graph.
