by Ezra Reguerra, Coin Telegraph:
The national spokesperson for India’s ruling party called on the country to consider launching a Bitcoin reserve pilot, saying that it would be a strategic step toward economic resilience.
In an article for India Today, Bharatiya Janata Party (BJP) spokesperson Pradeep Bhandari said the US strategic Bitcoin
reserve and Bhutan’s state-led mining operations signal that global finance is shifting toward crypto.
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He added that India, with an expanding renewable energy infrastructure, is positioned to create a sovereign Bitcoin strategy.
“This isn’t a reckless pivot,” Bhandari wrote. “It’s a calculated step toward embracing digital assets’ legitimacy.”
Crypto assets are taxed but unregulated in India
India’s crypto tax policy remains in limbo. Bhandari pointed out that in India, crypto is heavily taxed but unregulated.
The government has imposed a 30% flat rate tax on virtual digital assets (VDAs) like BTC and Ether
. However, it has yet to establish a regulatory framework for digital currencies.
Under Section 115BBH of the country’s Income Tax Act, profits from selling crypto are taxed at 30%. While purchase costs can be deducted, there are no provisions for other expenses or losses.
In addition, a 1% Tax Deducted at Source (TDS) applies to all crypto transactions above $115, deducted from either the buyer or seller.
During India’s G20 presidency in 2023, Bhandari noted, the government helped coordinate a crypto working group with the International Monetary Fund. However, other nations are already racing ahead.
Bhandari said that while recommendations will take their due course, jurisdictions like Russia, China, Brazil and other G20 nations led by the US are not pausing their crypto efforts to wait for a consensus.
He also cited the US government’s plan to expand its BTC reserves with budget-neutral purchases and pointed to three US states that already authorized Bitcoin as a reserve asset.
