India currently formulating its crypto tax laws 

The Indian government has recently formed a panel that would study how to properly tax investors’ income from their crypto investments. 

The panel, which will be headed by the country’s Ministry of Finance, will start evaluating if the crypto income can be taxed as capital gains or the government should form a new category for crypto gains. 

They are given one month to submit their report. 

With the rising popularity of cryptos, the Indian government is acting fast to deal with the situation as the country lacks any specific crypto tax laws. 

But under the country’s Goods and Services Tax, cryptocurrency exchanges are allowed to charge 18% of investors’ income from their cryptocurrency investments. 

Challenges for the crypto industry

The government is already planning to classify cryptocurrencies as commodities in the asset class, reports said. 

Right now, cryptocurrencies do not have any legal status in India, and the government is still figuring out the best way to deal with the country’s digital asset industry. 

There have been a lot of talks about taking various stances, from being critical to being friendly with cryptos, but until now no concrete plans have been implemented by the government.

The country’s crypto bill is currently pending before the Union cabinet approval, and if the bill gets the green light, then it could be introduced in the winter session of parliament. 

Will it follow El Salvador?

After El Salvador’s “Bitcoin Law” was finally implemented, many analysts are wondering if India would follow this path. 

Nirmala Sitharaman, the country’s Finance Minister, said the country is not yet ready to follow that bold decision, but he admits that India is recognizing cryptocurrencies’ big potential for its economy. 

India is also considering the potential of launching its own central bank digital currency to digitize the country’s economy. But while other countries are already launching their own CBDCs, India remains cautious about this idea. 

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Source: https://bitcoinerx.com/blockchain/india-currently-formulating-its-crypto-tax-laws/