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There is another bad news for cryptocurrency investors. In the budget, the government had announced a 30 percent tax on cryptocurrency income.
Now it is being considered to impose a Goods and Services Tax of 28 per cent. According to the information, the GST Council in its next meeting is considering imposing a hefty 28 percent tax on cryptocurrency transactions.
The government wants to classify digital currency as lottery, casino, racecourse and gambling. When the next meeting of the GST Council will be held, its date has not been announced at the moment.
In the Budget 2022, Finance Minister Nirmala Sitharaman had announced a tax of 30 percent on earnings from cryptocurrencies. A new section 115BBH was added in the Income Tax Act to introduce tax on virtual digital assets.
Taxes on cryptocurrencies were introduced in the budget, but so far no digital assets have been regulated. This means that the government wants a share from your earnings, but in case of any kind of problem, there will be no help related to regulation.
The Finance Minister had clearly stated that the imposition of tax does not mean giving legal status to cryptocurrencies.
Crypto gifting will also be taxed
It is believed that the GST of 28 percent will be different from the crypto income tax of 30 percent. Apart from this, TDS of 1% is also being considered for deducting the transaction beyond a limit. Not only this, if you gift cryptocurrencies or digital assets to a friend or relative, then it will also be taxed.
Heavy Fall in Cryptocurrencies
Cryptocurrencies have been under pressure for some time now. Bitcoin is currently trading at the level of $30820. There is a decline of about 9 percent in this. Similarly, Ethereum is seeing a decline of more than 6 percent and it is trading at the level of $ 2312.
