Crypto Tax Payment Kicks Off in India for NRIs Amid Unclarity
- Indian Financial Act to charge a 30% tax on Virtual Digital Assets (VDAs) transfers.
- The new law will reflect in the crypto assets assessment beginning from 2023-2024.
- India’s new taxation law is linked to an individual’s residence and source of income.
The Indian government introduced a Financial Act that would charge a 30% flat rate on income from Virtual Digital Assets (VDAs) transfers in 2022. This new law will reflect in the crypto assets assessment beginning from the 2023-2024 fiscal year, implying that all transactions from April 1, 2022, are subject to the new law.
India’s new taxation law is linked to an individual’s residence and source of income. Therefore, for non-resident Indians (NRI), only income generated, or deemed to have been accrued from within the country, is subject to income tax.
By the design of the new law, Indians transacting on foreign exchanges are not liable for taxation within the country. According to the law, the reason is that the said income does not arise nor is received in the country.
The new regulation is not an absolute exemption for crypto practitioners from the tax laws in India.
According to Archit Gupta,…
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