Government to change tax laws in Budget to tax cryptocurrency gains

Asked if a provision of TCS could be introduced for crypto trading, the Revenue Secretary Tarun Bajaj said “if we come up with a new law then we will see what is to be done”.

The government is mulling over changes in the income tax laws to bring under the tax net, with some changes that could form part of the Budget next year, a top official said.

Revenue Secretary Tarun Bajaj said that in terms of income tax, some people are already paying capital gains tax on the income from cryptocurrency, and in respect of Goods and Services Tax (GST) also the law is “very clear” that the rate would be applicable as those in case of other services.

“We will take a call. I understand that already people are paying taxes on it. Now that it has really grown a lot, we will see whether we can actually bring in some changes in law position or not. But that would be a Budget activity. We are already nearing the Budget, we have to look at that point of time,” Mr. Bajaj told PTI in an interview.