In response to a parliamentary question, state finance minister Pankaj Chowdhury said the government has collected Rs 60.46 billion in tax on virtual digital asset transactions since July this year.
The government introduced new tax rules for crypto assets in July.
After the introduction of Section 194S in the Income Tax Act 1961, "318 direct tax appeals" amounting to Rs 60.46 crore were received, the defense ministry said in a written response to the Rajya Sabha.
From April 1 Bitcoin, Ethereum, Tether etc. A 30% tax is applied in addition to fees and charges for cryptocurrency transfers ie
Also, 1% withholding tax (TDS) has been levied under Section 194S of the Information Technology Act on virtual digital currency payments above Rs 10,000 from July 1 to seek funding.
Chowdhury also told the House that the Central Bureau of Direct Taxation (CBDT) conducts outreach programs for taxpayers and conducts audits, seizures etc. If necessary then. including taking appropriate action.
The minister added that there is currently no cryptocurrency regulation in India and no foreign currency is registered by the government.
"Crypto-assets are by definition borderless and require international cooperation to prevent regulatory arbitrage," Chowdhury said.
Responding to the minister's comments, Manon Vora, senior vice president of strategy and business operations at digital wallet platform Liminem, said the tax regime introduced this year is a step in the right direction that "legitimizes" key industry stakeholders.
Looking at the bear market and associated taxes collected in 2021, the market is still active and users still believe in the industry. The cryptocurrency market, if properly regulated, can benefit both governments and industry. " she said.
Cryptocurrency industry experts believe that investors will feel more secure with current regulations, enable innovation, increase financial stability and increase the attractiveness of the crypto-asset industry.