India: Introduced Finance Bill 2023 including increased penalties for non-compliance virtual assets tax reporting requirements

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Description

Introduced Finance Bill 2023 including increased penalties for non-compliance virtual assets tax reporting requirements

On 1 February 2023, the Finance Bill 2023 was introduced in the Lok Sabha, the lower house of India's Parliament. In particular, the Bill outlines increased penalties for non-compliance with taxation requirements for virtual assets. The cryptocurrencies and non-fungible tokens are classified as virtual digital assets and are subject to an income tax of 30%, and a one-per-cent tax-deducted-at-source requirement on all transactions involving virtual digital assets has been in effect since July 2022. The Finance Bill 2023 includes a provision where non-compliance with the tax reporting requirements will result in a possible fine or imprisonment.

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Scope

Policy Area
Taxation
Policy Instrument
Direct taxes including Digital Service Taxes
Regulated Economic Activity
digital payment provider (incl. cryptocurrencies)
Implementation Level
national
Government Branch
legislature
Government Body
parliament

Complete timeline of this policy change

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2023-02-01
under deliberation

On 1 February 2023, the Finance Bill 2023 was introduced in the Lok Sabha, the lower house of India…