News Update

Good news likely for Indian cryptocurrency investors

• ByAyushi Ray     |    September 4, 2021

Good news likely for Indian cryptocurrency investors as cryptocurrency might be treated as a commodity and may incur taxes. Cryptocurrencies could be defined as commodities or assets in the new draft bill, reported The Economic Times after speaking to people aware of the development. The draft bill may also propose taxation for cryptocurrencies including laws for payments, investments and other utilities, added the report. While the government had earlier said it would not go for an outright ban on cryptocurrencies, it has not yet provided any clarity on how it plans to deal with virtual coin trade in India.

While the government had earlier said it would not go for an outright ban on cryptocurrencies, it has not yet provided any clarity on how it plans to deal with virtual coin trade in India. However, cryptocurrencies may be categorised as per the technology they use in the new draft bill. But the primary focus of the government will be based on end-usage of the assets for regulatory purposes, according to the ET report.
The new draft bill is also expected to determine how taxes will be levied on cryptocurrency investments.

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