The Indian government has collected over $12 million from crypto taxes in the last financial year, according to a report by The Economic Times. This is the first time that the government has disclosed the amount of revenue generated from taxing crypto transactions.
The report cites data from the Ministry of Finance, which shows that the government collected Rs 90.72 crore (about $12.2 million) from crypto taxes in the fiscal year 2020-21, which ended on March 31. This is a significant increase from the previous year, when the government collected only Rs 0.71 crore (about $95,000) from crypto taxes.
The rise in crypto taxation is attributed to the growing popularity of cryptocurrencies in India and the authorities’ clarification of the tax rules. According to the report, the government treats crypto transactions as income from other sources and levies a tax rate of 30% on the gains made from trading or investing in cryptocurrencies.
However, the tax rules are not uniform across the country, and there is still a lack of clarity on how to calculate and report crypto income. Some taxpayers have faced difficulties in filing their returns, as they have to rely on self-declaration and third-party platforms to track their crypto transactions.
Moreover, the legal status of cryptocurrencies in India remains uncertain, as the government is yet to introduce a bill that would regulate or ban them. The bill was expected to be tabled in the parliament in February, but it was postponed due to other priorities. The government has also indicated that it may take a calibrated approach to crypto regulation, and may not impose a blanket ban.
The crypto industry and enthusiasts have been lobbying for a positive and progressive stance from the government, and have urged it to consult with the stakeholders before making any decision. They have also highlighted the potential benefits of crypto adoption for India’s economy, innovation and digital sovereignty.