Centre mulls tweaking law in Budget to tax cryptocurrency gains

The government is considering changes in the Income Tax Act to bring gains made from transactions in cryptocurrencies under the tax net in the Budget next year. It is also looking at imposing goods and services tax (GST) on the trade in virtual currencies.

People are already paying capital gains on income from cryptocurrencies, and the GST law provides for taxing such transactions as ‘services’, Revenue Secretary Tarun Bajaj told PTI.

Investments in cryptocurrencies have surged lately with expectations of higher returns. These currencies have also gained wider acceptance among youth.