Crypto profits in India will be subject to tax deductions starting today as the crypto laws proposed during the Union Budget 2022 and passed in the Parliament takes effect. This brings ‘virtual digital assets’ — the classification of which is still fuzzy — under a tax bracket in India. But what we know so far is that starting today, April 1, a 30 percent tax will be deducted from any profits generated via crypto trading in India. In addition, India’s requirement of one percent TDS on each crypto transaction is also in action starting today. And failing to comply can land you in a lot of trouble.
Offenders of India’s new crypto laws could get into serious legal trouble, which includes prison time of up to seven years.
“Tax evasion, depending on the specific nature of evasion, may involve imprisonment for as long as six months to seven years and also fine if the amount is more. Depending on the nature and magnitude of the offence, the fine may go as high as 200 percent,” Debasis Nayak, the director and co-founder of Asian School of Cyber Laws (ASCL) told the media.