Cryptocurrency “Tax regulations” constitutes an important heading in the regulations.
While investors claim that high tax rates can disrupt the cryptocurrency trade and kill the industry, we see countries enacting tax rates at different rates.
Finally, India had a strong reaction with a 30% tax proposal. However, the determined rate was accepted by the Parliament and became a law.
It will enter into force on April 1
The draft that emerged in February received a great response and campaigns were organized to reduce the rate. Unfortunately, these efforts were in vain.
The tax law, approved by the parliament, will enter into force on 1 April.
Investors will not be able to deduct these taxes for their losses in addition to the 30% capital gains tax. Cryptocurrency gifts will also be taxed.
It has been stated that the law, which contains very strict regulations for cryptocurrencies, can be brought to the Supreme Court.
Rajat Mittal, Tax Specialist at the Supreme Court of India, said the law made the activities of traders almost impossible.
“The government has not accepted the crypto industry’s proposals to soften crypto taxation. It has tightened taxation rules, making it more difficult and perhaps impossible for day traders and exchanges to operate in India.”
While opposition parties oppose the law, he stated that he will end the cryptocurrency industry in the country.