The situation regarding cryptocurrencies in India remains unfavorable, and although the local government may have seemed determined to legalize cryptocurrencies in recent months, we have only recently learned that it all looks more like it is gradually being adjusted for the arrival of the official national digital currency. However, Indians do not have as strict conditions as in China, so they can trade cryptocurrencies. Most recently, however, Indians who trade cryptocurrencies on Indian platforms should come under the lens of taxpayers, as should those who keep such a coin outside the country.
„There is a recommendation to add the words cryptocurrency, crypto assets or digital currency in some parts of the Income Tax Act.“
The Indian government wants to capture income and investments in cryptocurrencies in India and beyond and is currently considering an amendment to Section 26A of the Income Tax Act and the Annual Information Regulation (AIR), which provides information on all investments made by taxpayers. If words such as cryptocurrency, crypto assets, or digital currency were added to the sections, it would mean that citizens who file a tax return would also have to disclose their income from investing or trading in cryptocurrencies. However, many point out the big gaps, so it is already questionable how such a bill will turn out. We have nothing left but to wait.