India has approved the controversial Finance Bill 2022 that imposes a 30% tax on virtual digital assets
The bill, which has now become a law, will come into force starting on April 1, 2022.
The India Finance Bill 2022 which levies a 30% tax on crypto assets was approved by the Rajya Sabha, one of the leading governing bodies of India. The bill was previously approved by Lok Sabha and was later introduced to Rajya Sabha for additional voting and final authorization.
India Approves Finance Bill That Levies 30% Tax On Crypto Assets.
The bill which was first introduced in January 2022, has reportedly undergone 39 changes before it was finally approved by the Indian parliament.
The India Finance Bill proposes strict regulatory measures concerning cryptocurrency taxation in India, including imposing a 30% tax on virtual digital assets, including NFTs and cryptocurrencies. The law will come into effect from April 1, 2022, onwards.
Along with that, the Indian government has also imposed a 1% TDS or tax deduction at source on each trade, stating that it would help the government trace the movement of crypto funds.
The controversial bill was met with intense criticism from various traders and industry experts. According to a survey conducted by Market research outlet YouGov, more than a third of India’s urban dwellers have expressed their discontentment concerning the new crypto bill and are against crypto regulation entirely.
Nischal Shetty, CEO of leading crypto exchange WazirX was also seen expressing his dissatisfaction concerning the newly introduced crypto law by stating that “We have entered a period of pain.”
“What we care most about is our customers. Millions earn a living through crypto. During the [coronavirus] pandemic, they lost jobs and crypto was one of the reasons people survived. We are concerned about the loss to their livelihood, their dreams … These are people in the 18 to 30-year-old category.” Shetty later added expressing concerns over heavy crypto taxation that may have severe implications on the future of cryptocurrency trading in India.
Moreover, the WazirX CEO also talked about the 1% TDS provision stating that “the 1% TDS will kill liquidity, which means ultimately profitability goes down for everyone. It’s a lose-lose.”