India's Proposed Crypto Tax Rules May Become Law

India's proposed crypto tax rules may into law tomorrow through parliament.

According to a report by CNBC on February 3, Ashish Singhal, CEO of cryptocurrency exchange CoinSwitch, said that India's decision to regulate cryptocurrencies by introducing a high crypto tax rate of up to 30% on all transactions involving digital assets is an indication that the government recognizes cryptocurrency transactions as valid.

The draft proposal will become more binding when passed into law after parliamentary deliberations but the statement released by the finance ministry has it that 1% of the tax amount will be deducted at source in a bid to capture the details of the transaction.

The bill has been submitted to India's upper house for consideration, however, as a currency bill, the amendment will go to the lower house, which will then vote on each amendment.

The bill is expected to be passed by the House of Commons by the end of the day.

Subhash Garg, former secretary in the Finance Ministry’s Department of Economic Affairs said that:

“I don’t expect the government to make any changes to the proposals on 30% capital gains tax, the 1% TDS or on other aspects of the tax proposals that needed clarity such as the offsetting of losses,”

Blockchain.News also reported that India's Finance Minister Nirmala Sitharaman came out guns blazing to clarify that cryptocurrency taxation is a "sovereign right" and "corrective action".