• Indian Parliament approved a 30 percent tax law on crypto currencies.
• A new law on crypto taxes will take effect in April 2022.
• To better monitor the flow of money, the Indian government also implemented a 1 percent tax deductibility at source for each trade.

Rajya Sabha approved that the cryptocurrency tax bill of India, which is 30 percent in India, has become law. It was part of the 2022 Indian Finance Bill. This law takes effect on April 1, 2022.

Within a matter of weeks, the bill was approved by the upper chamber parliament.

In January 2022-23, the Finance Bill was presented to parliament. It amended tax regulations around cryptocurrency and imposed a 30% tax on transfers and holdings of digital assets.

The cryptocurrency tax amendment of 30% does not allow cryptocurrency traders to offset losses with their profits. Every trading pair will be treated separately for tax deduction.

The Indian government also has imposed an additional 1 percent tax deduction at the source for each trade. This is because they think it would allow the government to track money movements. But exchange providers warn governments that the source 1 percent tax deduction will dry up their liquidity.

The new Indian cryptocurrency tax policy was approved in two months. However, the Finance Ministry has yet to provide a regulatory framework for the market. This despite many years of assurance.

The majority of cryptocurrency entrepreneurs believe the new cryptocurrency tax law of 30 percent will cause a brain drain and result in traders and talent who may eventually go to other decentralized platforms and exchanges to trade their crypto.

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