🚨Thread 🚨answering questions on India's #Budget2022 #crypto #CBDC announcements (send me Qs here)
Q1. Does taxation mean a recognition of the legality of crypto?
What is legal & isn't will be decided by the India Crypto Bill, which hasn't been tabled yet. This is a deterrent..
Q1. Does taxation mean a recognition of the legality of crypto?
What is legal & isn't will be decided by the India Crypto Bill, which hasn't been tabled yet. This is a deterrent..
https://twitter.com/rishabhmansur2/status/1488411292113063941
The #India #crypto #bill was expected to be tabled in final form in this budget session. It might be so if the cabinet clears it but the bill is expected to be finalized by May. The motivations behind today's announcement is not clarity per se but signaling:
1. A high #tax rate and no loss offsets signals the government's intent to deter #crypto trading activity.
2. #TDS reporting signals their intent to expedite data gathering around crypto transactions.
3. Signal an intent to regulate as many sessions have gone by without a bill
2. #TDS reporting signals their intent to expedite data gathering around crypto transactions.
3. Signal an intent to regulate as many sessions have gone by without a bill
Taxation does not imply legality. Even illegal transactions are taxed in India because "transactions" under Income Tax Act are not only legal transactions
The actual contours of taxation are usually provided in guidance by the tax authority #CBDT. The devil is in the details when it comes to #crypto tax. Will there be retrospective tax? How will forks be treated etc. should be dealt with in details from the CBDT
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