In the United States Senate, a bipartisan bill has been introduced to eliminate the burden of paying crypto tax, especially capital gains tax, on cryptocurrency transactions of $50 or less.
What exactly does the Virtual Currency Tax Fairness Act entail?
Speaking about the bill, it’s the Virtual Currency Tax Fairness Act that exempts small crypto transactions from tax. Whereas Republicans Pat Toomey and Kyrsten Sinema introduced it, it’s not the first of its kind. In the past, a bill like this has been brought before US Congress. For instance, in February, Suzan DelBene and David Schweikert, along with Darren Soto and Tom Emmer, introduced bipartisan legislation. They proposed eliminating taxes for minor cryptocurrency transactions of $200 or less.
David Schweikert attempted to justify his claims by claiming that virtual currency is changing our daily lives and that the US government needs to acknowledge this and act to treat digital currencies fairly under our tax code.
This legislation is a significant step forward that will allow the digital economy to grow. DelBene also stated that the outdated cryptocurrency regulations do not consider the sector’s rapid growth and applications in everyday life. “The United States must stay ahead of these innovations and ensure that our tax code keeps up with our use of virtual money,” the Representative said.
Cryptocurrency Regulation Bill
Senators Cynthia Lummis and Kirsten Gillibrand introduced comprehensive cryptocurrency regulation legislation in June. Similarly, the plan intends to exempt cryptocurrency transactions under $200 from taxation. The Act also addresses the issue of which digital assets are subject to regulation by the Commodity Futures Trading Commission (CFTC).
What Does US Crypto Tax Law When You Buy Crypto?
American cryptocurrency users must currently register capital gains on cryptocurrency purchases under US tax regulations. However, supporters argue that this tax law has inadvertently limited the use of cryptocurrencies in the United States.
Crypto Tax Laws for Indian Investors
India has one of the world’s largest economies, but the country’s tax laws do not appear to be friendly to crypto enthusiasts. In February, the Indian government proposed a 30% tax on digital assets and exchanges capital gains. The country’s parliament approved the tax at the end of March.
Beginning July 1, 2022, all cryptocurrency transactions in India will be subject to a 1% tax deducted at source (TDS). However, India’s tax laws have had a negative impact on cryptocurrency businesses operating there, with major exchanges reporting a drop in trading volumes and user activity.
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