The Government of India has proposed taxation of crypto gains which is 30% of the gains as well as there will be 1% GST in all the trades. Now it was unclear that the gains will be for all the trades as a whole like (gains - losses) or it is only in the gains. Yesterday, the Indian government has tighten the rules that every gain will be taxed and it will not be set off of any losses from other virtual digital assets.
PC: Pexels.com
For example, if I got a gain of 100$ in one trade and 200$ loss in another trade, I have to pay around 30$ as gain and GST. So my effective loss will be (-200$ - 30$ + 70$) i.e. I am down 160$ in two trades which is quite bad, to be honest. This is a big jolt to the crypto industry as the investors cannot set off the losses in one crypto asset against another. This is nothing but telling that you should not invest in crypto.
The 30% tax is covered in all the emerging digital assets, including NFTs, metaverse, digital currencies and other assets. For me, this is just plain daytime looting from the government. I have also signed a petition which has been created my many investors and developers, where some people earn crypto as their income and when you tax it that will e a huge blow to everyone out there. Along with that, it will demotivate a lot of Indians to actually invest in crypto and other things.
The best way to tax is :
- The tax should be the same as Stock Market like 20% and in long term, it should be 10%.
- Reduce the TDS to 0.05% than 1%.
- Set-Off should be allowed in Crypto
This is what I think is better for both government and crypto investors in India. Otherwise, the government is pushing us away from crypto investment.
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This picture is terrifying, especially for short-term investors. Waiting for more details from RBI, let's see what's next.
I do not think RBI can do anything here.
The government will decide yes, but what I meant here is RBI is the instructor to all financial institutions. Don't you agree upon that brother?
I know RBI has some say in this, but RBI is acting on Governments term now...they can just say if its legal or not, nothing else.
The government has indirectly pointed to Crypto as a taboo or scam or whatever we call it, and as you mentioned too.
The tax will slow down a lot of transactions and probably will slow down the crypto hype as well in India.
too high
yes too high
Ok mil geya, thanks for this article, mai upna knolage batana chahatahu, crypto tax ke bareme