@BOMBERuss 31 March 2022 more from that month

The upper house of the Indian parliament has approved a law to raise the tax rate on transactions with cryptocurrencies to 30%. The tax on the storage and transfer of cryptocurrencies increases from April 1, 2022. The approval of the bill by the upper house of the Rajya Sabha Parliament took place on March 31, a week after the approval by the lower house of the Lok Sabha. The bill was submitted to Parliament in January. According to the document, traders will not be able to compensate for their losses at the expense of profits, and each trading pair will be considered separately for tax deduction. The Indian authorities have introduced a one percent tax deduction (TDS) for each transaction, claiming that this will help track the movement of funds. However, exchange operators have already warned that TDS could drain liquidity. Currently, income from trading cryptocurrencies in India is defined as income from financial services, to which an 18% tax is applied. Back in November last year, the government of India was considering the possibility of reducing the goods and services tax (GST, an analogue of VAT) paid when buying or selling crypto assets from 18% to 1%. In February 2021, the Indian authorities already tried to consider raising the tax on cryptocurrencies, but faced resistance from the community. Recall that it all started with the fact that in 2020, the Central Bureau of Economic Intelligence of India (CEIB) proposed to impose a goods and services tax (GST) on bitcoin trading, the amount of which is 18%.