The head of the Central Council for Direct Taxes (abbreviated as “CBDT”) stated that the proposed 30% tax on cryptocurrency revenues has been approved by the government and is scheduled to be implemented at the beginning of next month.

The same spokesperson told that the implementation of the 1% withholding tax (TDS) has been postponed to July 1, adding:

Today’s income tax collection of Rs.13.63 thousand crore is expected to rise further until March 30th.

Gross and net collection in the past five years and tax administration history are optimal.

Our total numbers are over 15 lakh rupees, which we have never been able to touch before.

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The CBDT chief explained that the government’s net tax collection rose by 48.4% annually to Rs.13.63 crore, the highest volume since 2018-2019.

India is one of the few countries to tax cryptocurrencies and digital currencies, including non-fungible tokens (NFT) after Finance Minister Nirmala Sitharman introduced a 30% income tax on crypto transactions in the 2022 budget.

Sitharman also proposed a 1% rate on such transactions to include the asset class under the tax regime.

She said the ministry will impose tax measure on cryptocurrencies, including NFT, which has become popular in India.

Sithraman stated in late January:

No deduction is permitted in respect of any expenses or provisions while calculating this income except for the purchase cost.

In addition, the loss resulting from the transfer of cryptocurrency cannot be compensated for any other income.

The crypto community in India is demanding a tax cut of 0.01%:

Several crypto groups have called on the Indian government to reconsider the 1% rate and asked Sithraman to reconsider its proposal.

For its part, IndiaTech wrote a letter to Finance Minister Nirmala Sitharaman and Revenue Minister Tarun Bajaj also proposing a tax cut.

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In the message, Ramesh Kaylasam, CEO of IndiaTech said:

If the intent of the proposals is to seek additional revenue from these crypto assets, a 1% tax on the value of the entire transaction would render the business unviable, and thus would have an impact on government revenue forcing investors and those who engage in trade to work abroad or You are forced to resort to working through opaque P2P methods.

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