30 August 2026
Indian Govt To Outline Regulations And Taxation In New Crypto Bill
India’s much-awaited crypto draft bill may define digital currencies and categorize them based on usage. This move will help Indian Cryptocurrency investors who have been long waiting for regulations on Crypto trading.
The Indian government may define Cryptocurrencies as commodities or assets in the new draft bill. The bill will also propose Cryptocurrency taxes including laws for payments, investments, and other utilities.
There is no transparency on how the government plans to deal with Cryptocurrency trading in India. However, they had earlier said it would not go for an outright ban on Cryptocurrencies.
As per the sources, the new draft bill will classify Cryptocurrencies as per the technology they use. The government’s primary focus will be based on end-usage of the assets for regulatory purposes. This bill is also expecting to define how taxes will be charged on Cryptocurrency investments.
The government aims to define cryptocurrency and its treatment in various use cases which will help authorities register Cryptocurrency trade in the books of accounts and tax accordingly. There are chances that government may not allow payments and settlements via cryptocurrencies through its bill.
There is a need for clarity on whether Cryptocurrencies will be treated as services, commodities, or similar to equities and only then the digital assets are regulated or taxed.
The sources also revealed that the government could apply something similar to security transaction tax (STT) on Cryptocurrency trade. If Cryptocurrencies are classified as commodities, the gains or returns of investors could also be taxed as business income at normal income tax rates.
It's a need of an hour to have proper regulations on cryptocurrencies in India as the cryptocurrency trade is growing rapidly. Currently, India does not have any legal status for Cryptocurrency. The proposed bill for crypto will determine the future of digital assets in the country.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.
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