Indian crypto community continues to express their displeasure and irritation with the tax law, with many claiming that it would do more harm than good. India’s finance minister, Nirmala Sitharaman, presented the bill to both the lower and upper chambers of the House of Parliament. According to Nischal Shetty, Chief Executive Officer of India’s largest crypto exchange, WazirX, the law might lead to an increase in capital outflows to international exchanges, which is bad for the economy.
According to the bill, which was announced by India’s lower house of Parliament, Indians would begin paying a capital gains tax of 30% on bitcoin transactions. It is important to note that besides the capital gains tax, people who deal in cryptocurrency will also be subject to a 1% tax deducted at the point of sale (TDS). However, there is no provision for taking losses into account. According to the statement, the crypto tax bill will be signed into law on April 1 and the TDS will begin three months later.
More than 20 members of Parliament in the lower house have questioned the bill for a lack of clarity in the definition of crypto. Others are fearful that the new crypto tax may spell the end of India’s digital asset industry. Sitharaman responded to the comments by saying, “There is no confused signal.”
She also stated that the committee is currently conducting discussions on cryptocurrency regulation or outright prohibition. However, Sitharaman supported the crypto taxation law, arguing that because people are benefiting from the industry, it is appropriate for the government to tax them.