Indian Finance Ministry looking to create a perfect and precise rule of tax on crypto. They want to know whether there is a need for a new category for the tax rules or if existing rules & categories are enough.
At present rules for the crypto market are unclear in India. So most of the people of the Indian crypto community don’t want to go with any tax paying procedure. But those who are following the rules perfectly, need to pay a very high amount of tax. So to avoid tax evasion, Indian government authorities want to bring some necessary changes.
According to a report by Inc42, The Indian ministry of finance created a panel, which will examine how to tax the crypto income perfectly.
The main work of the panel will be to figure out the best category under which the crypto income can be fit. Or is there any need for a new category to make for the crypto specially?
There is a deadline on the panel, to give a report about this matter with perfect research within the next 28 days.
In the present time, crypto tax lies under the GST. According to it, every crypto user needed to pay 18% tax. However this rule was introduced earlier this year to grab tax from crypto Investors.
There are many types of crypto investors, who know very well that 18% tax is a very high tax. Even this tax is very high in comparison to stock market traders, so due to this reason most of the Indian crypto traders don’t pay tax.
No crypto rule, No tax
Many crypto investors in the Indian crypto community said why pay tax if the Indian government doesn’t want crypto to exist. So if there is no rule the we will not pay tax.
Probably all these issues raised by the Indian crypto community are right to some extent. And that is why new precise crypto rules are needed in India, so that the Indian crypto community can invest in crypto with full confidence.