India’s Parliament passes new Crypto Tax Bill, Community Responds with general Uproar

Indian crypto investors will now have to pay a capital gains tax of 30% on all crypto transactions as the Parliament has passed its newest industry regulations. The controversial tax proposal passed last Friday sparked uproar and disappointment throughout the community.

Additionally, the proposal stipulates that those who buy or sell crypto must pay a 1% tax deducted at source (TDS) with no ability to take deductions for losses. Following the Parliaments’ decision, the bill will come into effect on April 1, while the TDS will begin on July 1.

The community’s response was overwhelming as they claim that the bill provides investors with no favorable amendments.

“This is not conducive for the government or the crypto ecosystem of India, it is poised to do more harm than good,” said Nischal Shetty, one of the most prominent crypto voices in India and co-founder and CEO of WazirX.

“This can result in cascading participation on Indian exchanges and lead to a rise in capital outflow to foreign exchanges,” Shetty said.

Furthermore, Sathvik Vishwata, co-founder/CEO of the crypto exchange Unocoin, stated that none of the community’s requests were acknowledged.

“This will have some repercussions on traders, especially the 1% TDS assessment. This will not only affect traders but also tax collections. We hope that in the subsequent years the crypto industry gets treated like other investment-related industries,” Vishwanath said.

“Witnessing no amendments in the crypto taxation policies have discouraged firms and investors from investing in the volatile market. This will hamper the overall growth of the sector by reducing mass adoption and its validation,” said Abhay Aggarwal, CEO, and founder of NFT marketplace Colexion.

Source: Coindesk