Crypto industry in wait and watch mode after clarification from govt

economictimes.indiatimes.com:

VDAs) has hit the crypto players loud and hard. Their counter-responses say it all. Market players believe that these stringent and ultra-strict rules will add more speed breakers to the already bumpy ride of the crypto industry. Implementing a single tax for a single crypto rule will be a massive blow to the nascent crypto industry in India, said Shivam Thakral, CEO, BuyUcoin.

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«We have urged the regulators to take a nuanced approach towards crypto and discuss it with the industry stakeholders before arriving at a final decision,» said Thakral. «Overall picture looks gloomy for the Indian crypto industry for now.» Minister of State for Finance in Lok Sabha on Monday said that “as per the provisions of the proposed section 115BBH to the Income-tax Act 1961, loss from the transfer of VDA (Virtual Digital Assets) will not be allowed to be set off against the income arising from transfer of another VDA.” Section 115BBH is a newly proposed section in the Income Tax Act that seeks to define and add a provision to tax gains from VDAs like cryptocurrencies. Taxes include 30 per cent on profits and 1 per cent TDS to be collected by exchanges. Edul Patel, CEO and Co-founder of Mudrex, said that India has more than 100 million cryptocurrency users recording the highest number globally. «These stricter laws, such as mandatory 1 per cent tax deduction at source on all crypto transactions, irrespective of profit or loss and 30 per cent taxation on profits gains, could deplete the crypto trade volume in the country,» he added. Taxation laws may boost the morale of crypto enthusiasts, but the industry is currently