India to tax crypto income as gambling winnings

Finance secretary T. V. Somanathan said it was not illegal to buy or sell crypto in India and that earnings will be taxed like winnings from gambling.

India.- A new tax regime for cryptocurrency transactions in India will treat income earned to the same tax rate a gambling winnings. Finance secretary T. V. Somanathan told Bloomberg that cryptocurrencies were still in a “grey area,” but that it was not illegal to buy or sell them.

The framework for cryptocurrency payments and transactions will be similar to the tax regime for winnings from horse racing or betting and other speculative transactions, with the government proposing a 30 per cent tax on income from transfers of virtual assets, including cryptocurrencies. The Indian cabinet has yet to approve the law before sending it to lawmakers.

For now, the government will tax any transactions tracked on citizens’ accounts, while a deeper tax framework is being developed.