India’s Tax Concerns Over Crypto Transactions Intensify
- India’s income tax department highlighted issues with virtual digital assets to the parliamentary finance committee.
- Challenges include anonymous transfers, offshore exchanges, and jurisdictional limitations.
- The Finance Ministry aims to curb decentralisation and privacy-focused systems ahead of the Union Budget presentation on February 1.
- Crypto traders in India face a flat tax rate of 30% and a TDS of 1% per transaction.
- Authorities plan to use AI and global data-sharing to cross-match TDS data with income tax returns for discrepancies over $1,200 (₹1 lakh).
India’s institutional unease with privately issued crypto is evident as the government struggles with enforcement challenges that complicate tracking and taxing crypto transactions. The focus remains on promoting an RBI-backed digital currency while maintaining heavy taxation on existing crypto activities.
Source: Decrypt
