Crypto-currencies can be taxed in the same way as lotteries, casinos
The government plans to tax cryptocurrencies, such as Bitcoin, on the same basis as casinos, lotteries, bets and racetracks, sources said. The highest indirect tax decision-making body, the Goods and Services Tax (GST) Council, is considering levying a 28% GST on cryptocurrencies.
According to a media report, the GST Council is expected to discuss the proposal to tax cryptocurrencies at the next meeting. The date of the meeting has not yet been decided. The proposed 28% GST will be in addition to the 30% income tax on income from crypto asset transactions.
In the 2022-2023 Union Budget, Finance Minister Nirmala Sitharaman proposed to impose a 30% tax on income derived from the transfer of virtual digital assets. The new rules came into effect on April 1. Under the new rules, earnings from all virtual digital assets, including cryptocurrencies, will be taxable at 30%.
Gains from virtual digital assets including cryptocurrencies are taxable even if a taxpayer’s total income is below the threshold of Rs 2.5 lakh. Imposing 28% GST will make cryptocurrencies heavily taxed. This will put cryptocurrencies on par with casinos, betting and lotteries when it comes to the level of taxation. (ANI)
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