Bitcoin Trading Could Get Costlier for Indians

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  • Cryptocurrency News
Bitcoin Trading Could Get Costlier for Indians
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- A report in the Economic Times said that the government is considering an equalization levy on trading cryptocurrencies.

An equalization levy, also known as the Google (NASDAQ: GOOGL ) Tax, is the tax that was introduced in India in 2016 to tax digital transactions when buying goods and services online from foreign sellers. The two conditions that need to be met for the levy to be applied are:

  1. The seller has to be a non-resident entity/individual.
  2. The annual payment to that service provider should exceed Rs 10 lakh in a financial year.

According to the report, the tax department is examining if the 2% levy is applicable on crypto assets bought by Indians from overseas exchanges. In 2020, India had expanded the scope of the levy to include ‘e-commerce supplies or services’.

The Economic Times report quoted Girish Vanvari, founder of tax advisory firm Transaction Square (NYSE: SQ ) who said, “The way the new equalisation levy is worded and defined, it appears that it will also be applicable on cryptocurrency bought from an exchange not based in India.”

Cryptocurrencies are taking a beating in the markets right now. Bitcoin has fallen to $32,630 from $40,530 on June 14. Ethereum has fallen to $1,944 from $2,583 on June 14.

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100
  • hemang shah @hemang shah
    Stupidiest article
    Like 0
  • Tom Singh @Tom Singh
    what retailers are going to earn and pay tax when market is falling everyday 😀😀
    Like 3
  • Sarath Chandra @Sarath Chandra
    The annual payment threshold for equalisation levy is Rs. 1 lakh; not Rs. 10 lakh. Pl rectify it.
    Like 5
  • MOSTAFA AJJOUJ @MOSTAFA AJJOUJ
    JE VEUX VENDRE  AJJOUJ MOSTAFA  simo1961
    Like 0

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