The Central Board of Indirect Taxes & Customs in India has recently received a proposal classifying the taxation of cryptocurrencies.
The Indian daily TOI published today an information revealing plans for the taxation of crypto transactions. This proposal was submitted by the Central Economic Intelligence Bureau (CEIB), which is a component of the Ministry of Finance.
The CEIB relies mainly on the fact that the government can, according to current estimates, obtain approximately Rs 40,000 crore ($ 5.4 billion) annually in this way.
According to this proposal, Bitcoins and cryptocurrencies would belong to the class of intangible assets ’and they could impose a GST fee on all crypto transactions, which is charged on the margins made in its trading.
As we recently informed you after India lifted the two-year ban on crypto trade, the country has seen a huge increase in interest. Just a few months after the ban was lifted, the country saw a weekly turnover in cryptocurrency trading worth $ 1 million.
So, in the summer of this year, the Indian government considered banning the crypto trade again, as the country was losing rare revenues as it did not come up with a regulatory and tax mechanism.
At present, therefore, it is highly likely that this new proposal on the taxation of cryptocurrencies will be adopted and enter into force.
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