This has sparked resentment in the cryptocurrency community.

“Virtual digital assets are an asset class with varied use cases across industries. It’s not akin to gambling or lottery as being made out,” Aritra Sarkhel, director of public policy at WazirX, said.

“It will be great if deliberations are made to keep the taxation on VDAs in line with India’s treatment of other regular financial instruments and/or evaluate the different use cases of the tokens while making decisions on crypto taxation.”

Sarkhel thinks it will be essential to look at global jurisdiction arguments on such tax.

PwC, in its annual global crypto tax report (pdf), noted that the way cryptocurrencies are classified by local law determines tax rules for capital gains purposes, and each transaction should be assessed on a case-by-case basis.

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