Trading in Cryptocurrency in India

[Navjot Singh]

India considering regulating crypto as an asset, banning use for payments

India's crypto law may regulate cryptocurrencies as assets but their use as currencies for payments might be barred.

www.medianama.com

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India’s crypto law will regulate cryptocurrencies as assets but their use as currencies for payments might be barred, the Economic Times has reported. Active solicitation by crypto exchanges is also likely to be banned. The draft bill could be taken to the Union Cabinet for consideration within the next two to three weeks, a government source told ET. Under the bill, the Securities and Exchange Board of India (SEBI) might be appointed to regulate cryptocurrencies the source added.

 

[Navjot Singh]

Govt may tax cryptocurrency gains in next Union Budget. Check details

The proposal to bring cryptocurrency gains under the ambit of tax comes amid reports that the government is mulling to introduce a bill on cryptocurrencies during the winter session of Parliament beginning November 29.

www.hindustantimes.com

 

[Sushubh]

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[Navjot Singh]

Tax deduction for crypto, digital assets; Central Board of Direct Taxes issues notification

BENGALURU: The new tax guidelines on the transfer of virtual digital assets (VDAs) like cryptocurrency have put the onus of deducting one per cent tax largely o

www.newindianexpress.com

The Central Board of Direct Taxes (CBDT) on Wednesday notified detailed disclosure requirements for virtual digital assets (VDA) such as cryptos for TDS deductions, which will come into effect from July 1.

Accordingly, a new section 194S has been inserted in the Income Tax Act. According to new guidelines, if the transfer of VDA takes place through an exchange or broker, in order to avoid deduction of tax at multiple stages, tax may be deducted only by the exchange which is crediting/making payment to the seller. Where the transaction between Exchange and the seller is through a broker (who is not the seller), the onus to deduct tax is on both the Exchange and the broker. However, the onus will be on the broker, where there exists a written agreement between Exchange and broker that the broker should deduct tax.