IndiaTech asks Finance Minister for Clarification in Crypto Taxation

IndiaTech asks Finance Minister, Nirmala Sitharaman for Clarification in Crypto Taxation and also shared some recommendations for the Ministry.

Introduction

An Indian trade group IndiaTech, representing consumer internet firms, has sent an application asking the honorable Finance Minister of India Nirmala Sitharaman clarity on crypto taxation in the Union Budget session of 2022.

IndiaTech represents many major Cryptocurrency exchanges, such as CoinSwitch Kuber, WazirX, and CoinDCX.

IndiaTech has asked the government  the existing tax rules are in need of amendments to include crypto assets. They also requested some clarification in the process of taxes and fines.

The letter’s content

The President and Chief Executive of , Rameesh Kailasam gave his comments on this issue. He said that “The budget should ideally offer coherent rules on direct taxation and the GST Council should detail the applicability of taxation, else, there will be confusion. Basically, the line of thinking is that we shouldn’t be waiting for a bill alone and the Budget should begin the process.”

The letter‘s arrival is after the much awaited Crypto Bill of 2021. The bill was awaiting introduction at the winter Parliamentary session.

Why this letter?

Recently WazirX had to pay a fine of 49 crores. The fine was because of alleged evasion of 40.5 crores in GST dues. After this, multiple Cryptocurrency exchanges were investigated after this event. Buyucoin and Unocoin, are being investigated for tax evasion by the GST officials.

The accused parties claimed that them failing to pay the taxes weren’t intentional. They further added that the issue came because of lack of clarity regarding the tax rules.

Recommendations by IndiaTech

IndiaTech gave the recommendation of introduction of a flat 18% GST on exchange platform commissions. This means that brokerage or exchange fees per trade should be taxed, they said the total amount shouldn’t be seen as tax as with the scenario of e-commerce trade.

Meanwhile, for direct taxation, IndiaTech recommends enabling rules to recognise and treat the profits as income from capital gains or profits from business and profession. Also, IndiaTech has put forward the idea of making KYC (Know your Customer) mandatory.

Additionally, Other suggestions recommend a one year disclosure period for people holding holding Cryptocurrencies to disclose their property.

Conclusion

IndiaTech asks Finance Minister, Nirmala Sitharaman for Clarification in Crypto Taxation and also shared some recommendations for the Ministry. This will hopefully clear the clouds of confusion related to Crypto Taxation in India.

Hopefully, you liked this article. If you liked this article and would like to read more articles like this, do visit our website. If you want to appreciate us for our content, please consider subscribing.

Related Articles

Facebook
Twitter
Telegram