While Indian Finance Minister Nirmala Sitharaman did not mention cryptocurrencies in her budget speech this year, the Finance Bill 2023 includes amendments to the Income Tax Act that apply to tax on source (TDS) on cryptocurrencies.
Crypto tax company Koinx explained on Twitter that penalties for failure to deduct or pay crypto source tax include an amount equal to the unpaid source tax that will be levied by the Joint Commissioner, while interest at 15% per annum will be levied on late payments.
And according to India Today, people who fail to pay source tax on crypto transactions may be sentenced to up to seven years in prison. Last year, India implemented strict taxes on crypto trading: a 30% tax on profits and a 1% tax at source (TDS) on all transactions. (Bitcoin.com)