The Indian government is mulling the taxation of cryptocurrencies as business income, in a decision which could double the tax burden on investors, according to a local report.  

Fast facts

  • Currently, crypto earnings are taxed as capital gains, which stand at 20%, while business income rates reach as high as 42%. 
  • Taxing each crypto transaction rather than a single levy upon liquidation of assets is also under consideration, according to two senior tax advisors involved in government discussions cited by the Economic Times.  
  • Additionally, India may levy an 18% Goods and Services Tax (GST) on crypto investors themselves, if exchanges pass on this tax burden.
  • Crypto tax implications are expected to be on the table in the upcoming February budget session.