A few days back, the Indian tech industry association, IndiaTech which represent major crypto firms from the crypto industry like WazirX, CoinDCX and CoinSwitch Kuber, etc wrote a letter to the country’s Finance Miniter, Nirmala Sitharaman seeking a proper clarification on the administration’s stance on the current crypto firm operating laws and the tax laws imposed on the crypto industry in the country.
IndiaTech further requested the government to introduce the impending Crypto Bill in the upcoming Union Budget 2022-23. So, everything regarding the crypto industry gets clarified and well-defined for all.
Why is it necessary to clarify the crypto law?
Well, this step was mainly taken by the IndiaTech association, due to a recent mishap by WazirX where it ended up paying a hefty penalty of ₹49.20 crore on the grounds of tax evasion due to a misinterpretation of the current tax laws. This ended up severely tarnishing the brand’s name as it was thought WazirX had purposely evaded the tax.
Plus, it was later found that the whole crypto industry had paid a total penalty of a whopping ₹70 crore due to the same issue of misinterpretation of the tax laws around crypto.
Not only this but even the investors are affected due to the non-clarity of the present crypto laws. They too have a hard time figuring out the proper crypto tax calculation norms for which they too misinterpret the current laws and later have to pay penalties for their unwanted mistakes. Plus, as there is no regulatory body, the investor has no one to complain to for any crypto transaction mishaps.
Well, this is also the major reason why new investors or new interested parties who want to set up their businesses in this sector are unwilling to. Hence, this is crippling the growth of this whole crypto sector.
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