India’s Tax Revenue from Cryptocurrency Transactions Tops $19 Million for 2023 Fiscal Year
The Indian government has collected over $19 million in tax revenue for the fiscal year 2023, according to recent reports. This comes after the Union Budget 2022-2023 proposed a 1% TDS (tax deducted at source) on cryptocurrency transactions, in addition to the existing 30% tax on income from such transactions.
The 30% tax law came into effect in India on April 1 under section 194S of the Income Tax Act of 1961, while the TDS tax was implemented in July 2022.
As of March 20, the total direct tax collection by the government was 157.9 crore Indian rupees (~$19.2 million).
At a recent event, India’s Minister of Information Technology, Rajeev Chandrasekhar, declared that the country does not want to stifle innovation. However, he emphasized the need to protect national security and intelligence objectives while ensuring convenience in business and everyday life.
Chandrasekhar also highlighted the Indian government’s unique position regarding all internet-related issues, including web3 and blockchain. He stated that the government is highly encouraging innovation.
India’s central bank has often emphasized the potential financial stability risks that cryptocurrencies could pose, even as it proposed banning them as an asset class.
Overall, the Indian government’s tax collection from cryptocurrency transactions demonstrates its growing focus on the regulation of digital assets, as well as its recognition of their importance in the modern financial world.
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