icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

India considers taxing crypto purchases from overseas exchanges

India considers taxing crypto purchases from overseas exchanges
India’s tax department is reportedly looking to start applying an ‘equalization levy’ to crypto assets, forcing investors to pay an additional 2% for each purchase from exchanges outside the country.

The country’s digital tax, popularly known as the ‘Google tax’, came into effect over a year ago. It is chargeable at a rate of 2% on consideration received by non-residents who operate digital businesses targeting, among other things, the Indian market.

Also on rt.com India considering TOTAL BAN on cryptocurrencies – media

The equalization levy could apply to the selling price and, therefore, exchanges may need to add it to the cost of the assets, according to Girish Vanvari, the founder of tax-advisory firm Transaction Square, as quoted by the Economic Times.

“The way the new equalization levy is worded and defined, it appears that it will also be applicable on cryptocurrency bought from an exchange not based in India,” he said.

However, analysts have expressed doubt over the feasibility of applying the tax to crypto investing in light of the underdeveloped regulatory framework in relation to cryptocurrencies.

READ MORE: Bitcoin out, digital rupee in: India cracks down on private cryptocurrencies while seeking to launch its own digital coin

“In the absence of any guidelines on the treatment of crypto assets, there is ambiguity in how these would be treated under the tax laws and FEMA (Foreign Exchange Management Act),” Amit Maheshwari, a partner at tax consulting firm AKM Global, told the media.

For more stories on economy & finance visit RT's business section

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.

Podcasts