India’s Tax Authority Asks Crypto Exchanges for Details of Coins Traded on Their Platforms – Taxes Bitcoin News

India’s tax authority has reportedly asked major cryptocurrency exchanges in the country to provide information pertaining to the coins traded on their platforms. To determine whether crypto transactions are taxable, the tax authority will also examine their taxability to see if goods and service tax (GST), can be applied.

Indian Crypto Exchanges will provide details of coins traded on their platforms to Tax Authority

India’s Central Board of Indirect Taxes and Customs (CBIC) has asked major Indian crypto exchanges to provide details about the cryptocurrencies traded on their platforms, Business Standard reported Friday. One senior official said:

Meetings were held with cryptocurrency exchanges to discuss a wide range of issues related to this asset class. We requested a complete report about the different cryptocurrency products that are being traded, their transaction fees, and how these figures were calculated.

CBIC is also said to be evaluating crypto transaction taxability to see if goods and services taxes (GST), can apply to them. Tax authorities are also working to classify and define crypto assets.

According to the official, it is possible to assess whether GST applies to these cryptocurrency products as well as their tax rates by having a better understanding. Tax authorities gave the crypto exchanges until December 31st to submit the necessary information.

Services provided by cryptocurrency exchanges are subject to an 18% GST. In April, the Indian government started taxing crypto income at 30 percent. A 1% tax deducted from source (TDS), for cryptocurrency transactions was implemented in July. Last month, it was revealed by the Ministry of Finance that GST is being considered for crypto.

The Indian government is currently working on the country’s crypto policy. Nirmala Sitharaman (Finance Minister) stated that India plans to address crypto regulation at the G20 Presidency. This is to develop a technology-driven regulatory framework. According to a government official, India will finalize its position on crypto legalization by the end of the first quarter next year to comply with standards established by Financial Action Task Force.

Let us know your thoughts on India’s plans to tax crypto transactions. Please comment below.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.

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