Express
Indian Authorities Struggle with Cryptocurrency Tax Enforcement, Implementation of 30% Profit Tax Difficult
Summary: Indian financial authorities have reiterated concerns about cryptocurrency trading, warning that it could make tax enforcement more complex. The Indian tax department stated that offshore trading platforms, private wallets, and DeFi tools pose risks that could make tracking cryptocurrency income nearly impossible. Cryptocurrencies allow for anonymous, borderless, and almost instant value transfers, enabling individuals to ...
Indian financial authorities have reiterated concerns about cryptocurrency trading, warning that it could make tax enforcement more complex. The Indian tax department stated that offshore trading platforms, private wallets, and DeFi tools pose risks that could make tracking cryptocurrency income nearly impossible. Cryptocurrencies allow for anonymous, borderless, and almost instant value transfers, enabling individuals to move funds without the need for regulated financial intermediaries. Currently, India imposes a unified tax of 30% on all profits from cryptocurrency activities, in addition to withholding a 1% tax on all transfers (whether profitable or not). Despite officially allowing cryptocurrency trading under a high-tax regime and approving major US exchange platform Coinbase to return in 2025, the Indian government's overall attitude towards cryptocurrencies remains cautious and complex.
Tags:
Link: Indian Authorities Struggle with Cryptocurrency Tax Enforcement, Implementation of 30% Profit Tax Difficult [Copy]
