In India, cryptocurrency investors have been waiting with bated breath for information on how the government plans to tax digital assets. From April 1, India will tax all ‘virtual digital assets’ at 30%, according to Finance Minister Nirmala Sitharaman’s Budget 2022. The 1% TDS (tax-deductible at source) that applies to every single bitcoin transaction is seen as an issue by analysts. Regardless of his income level, the beneficiary is now required to pay 30% of his return as tax. Kunal Jagdale, Founder, BitsAir Exchange, said: “Although cryptocurrencies are described as assets in the budget, they are being handled differently than other assets. The biased behavior with cryptocurrencies in the recent budget could have some serious impact on the industry. People also feel that higher taxes will force the industry to leave the country. Some even think that too high a tax may prompt the industry to operate underground as well as move upcoming innovations overseas.” 1% TDS Is Keeping Traders Awake Traders, investors, exchanges, and everyone involved in the market are concerned about a 1% TDS. The 1% TDS rule on transfers of virtual digital assets, according to Sharat Chandra, VP-Research and Strategy at EarthID, a self-sovereign Identity Management Platform, will be a compliance nightmare for both investors and centralized exchanges in the absence of clear guidelines on how to implement TDS. He said: “Some of the investors have alr...
