As per a leading dailies ET report, the centre is mulling to impose an equalization levy on cryptocurrency trades. This equalization levy is nothing but Google (NASDAQ:GOOGL) Tax that came into existence in India in the year 2016 and was particularly levied on those transactions that involved purchase of goods and services via the online route from foreign sellers.
Further there are stated two conditions which shall make a transaction entitled to this tax levy:
1. The seller needs to be a non-resident entity or individual
2. The payment to that particular entity/individual or service provider has to be higher than Rs. 10 lakh in a fiscal.
In accordance with the report, the tax department in the country is studying and analyzing if 2% levy is being applied on crypto assets that are purchased by Indians from crypto exchanges in foreign nations.
Currently, on the extensive crackdown from across the globe and forecast of 'death cross' pattern for bitcoin, there has been a huge sell off in cryptoassets, while Ethereum has tumbled to levels of $1800, bitcoin was last trading at $30,550, way below its support price of $36,000.