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India Seeks Crypto Industry Feedback on Tax Policy, TDS Burden, Offshore Shift
The Indian government has initiated a consultation process with the cryptocurrency industry to gather feedback on its tax policies and procedures regarding digital currencies. The move is aimed at addressing concerns and issues faced by stakeholders in the sector.
As part of this effort, the authorities have invited the input of industry professionals, exchanges, and other stakeholders to discuss potential changes to the existing tax policy framework. The government is seeking suggestions on how to make it more conducive for businesses operating in the cryptocurrency space.
One of the primary concerns being addressed is the burden associated with deducting taxes at source (TDS) on cryptocurrency transactions. Many industry experts have expressed dissatisfaction with the current TDS system, which they argue creates an undue administrative burden and can lead to a shift towards offshore trading platforms.
The Indian government has acknowledged these issues and is seeking feedback from stakeholders on potential reforms that could address these concerns and promote a more favorable environment for the development of the cryptocurrency sector.
In recent times, India has taken steps to regulate its cryptocurrency market. The country’s central bank, the Reserve Bank of India (RBI), banned commercial banks from providing services to cryptocurrency exchanges in 2018. However, following numerous court challenges and the introduction of the Indian Finance Bill, 2020-21, the RBI’s ban was partially lifted.
The government is now seeking to strike a balance between regulating the sector and fostering growth by encouraging innovation and investment. By engaging with industry stakeholders, it hopes to create an environment that promotes the development of cryptocurrencies while ensuring compliance with existing tax laws and regulations.
Industry professionals are being invited to provide input on various aspects related to tax policy, including suggestions for simplifying the TDS process and addressing concerns regarding offshore trading platforms. The government is committed to working closely with stakeholders to address these issues and ensure a more inclusive environment for the growth of the sector.
The consultation process is a critical step towards finding solutions that benefit both the government and the cryptocurrency industry in India.
Source: news.bitcoin.com
