The cryptocurrency sector in India is hoping for complete clarity on crypto classification and taxation in India.

Industry sources have told CNBC-TV18, that cryptos should be treated as an asset class and they do not expect it to be a legal tender.

Crypto exchanges in pre-budget recommendations have said that government should consider all aspects of crypto taxation and have a reasonable tax regime for the sector. A GST of 18 percent can be charged on fee collected by exchanges in enabling buying and selling of cryptos. Profits of investors from crypto investments can be charged a short term capital gains tax of 30 percent and a long term capital gains tax of 20 percent.

Industry bodies have also said that taxes on trading and investment in cryptos should be similar to trading and investment in commodities and securities. The industry has also sought clarity on reporting procedures and whether TDS will be applicable.

While the sector awaits a regulatory framework, the players hope that tax related ambiguities can be erased in the budget.

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First Published:Jan 19, 2022 9:12 PM IST