India has began plans taxing income from digital assets as well as plans to launch its own digital currency.
The Indian government also announced a 30% tax on the sale of cryptocurrency assets, bringing more clarity to the regulatory and tax treatment of cryptocurrencies after months of uncertainty about their legal status in the country.
“Transactions in virtual digital assets have increased phenomenally,” Finance Minister Nirmala Sitharaman said in her annual budget speech on Tuesday. “Because of the magnitude and frequency of these transactions, a specific tax regime is required.”
Sitharaman also announced plans to launch an Indian central bank digital currency (CBDC) in April. The Reserve Bank of India (RBI), the country’s central bank, has been working on a phased implementation strategy for the CBDC.
Among the rules governing the taxation of digital assets are that losses from the sale of crypto assets cannot be offset against other income, and digital asset gifts are taxed in the recipient’s hands.
