The lower house of India's Parliament has passed the "Finance Bill" with controversial amendments regarding the taxation of digital assets, The Indian Express has reported.
The new rules will come into force next April 1.
The country's Ministry of Finance had reported that when calculating taxes, traders will not be able to offset losses on one digital asset with gains on another. In addition, the law also provides for a 30% tax on cryptocurrency transactions and 1% fees under taxes deducted at source (TDS).
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
Under Indian law, income tax is levied at the source of income. This means that when making a taxable cryptocurrency transaction, the user must deduct tax from the payment amount based on the tax assessed and transfer these fees independently in favor of the state.
Participants in the Indian crypto sector had opposed the amendments proposed by the Treasury, hoping to soften the provisions on TDS and cryptocurrency transaction tax. However, the parliament did not take their opinion into account.
CoinDesk has reported industry players are now considering going to the Supreme Court.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.