[2022-02-01] Indian Govt to tax crypto gain at 30% and introduce Digital Rupee

bbc.reporter

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30% is very huge to be honest but rather than banning it i would prefer paying tax after all paying taxes make country become more great.

and introduce digital ruppe is step ahead with other country except china Grin

if the digital ruppe sit on chain like eth or bsc it would be more great s

The Indian government taxed it high because it wants the people within their jurisdiction to be discouraged from using it and also to encourage the use of the digital rupee. This is an expected reality because all governments want control and order. However, what the Indian government might not have discovered is the real users of the cryptospace, those users who are not in this as a speculative investment are those ones who will be hard to tax.

SFR10

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Quote from: UKprod on February 01, 2022, 02:38:03 AM

Nirmala Sitaraman, at the Union Budget presentation has announced that all the crypto gains would be taxed at 30%

It's really weird seeing it came before the crypto bill!

Quote from: UKprod on February 01, 2022, 02:38:03 AM

Further, there is an intention to introduce withholding taxes at 1% on transfers.

This is the first time I'm seeing the term "TDS" and despite how small that percentage appears, it's ridiculous ^{[without considering the "gift" part from the same article]}!

Quote from: UKprod on February 01, 2022, 02:38:03 AM

Further, from FY 2022-23 the RBI would be introducing the Digital Rupee

Great, another worthless CBDC is on the rise ^[SMH] Angry

Quote from: stompix on February 01, 2022, 02:49:56 AM

Wow, this is one huge %.

Quote from: UKprod on February 01, 2022, 02:55:49 AM
So effectively only profits will be taxed.
It's still quite a lot ^{[some European countries ask for less]}!

buwaytress

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Quote from: stompix on February 01, 2022, 03:23:43 AM

Quote

It was also announced that any loss made on the transaction of such digital assets cannot be set off against any other gain.

I don't remember which country in Europe made the same proposal as per transaction tax with no deduction, but it's still stupid, you might have to pay 30% on the profits from one good buy but you're not covered by the loss you made with other moves.
You bought 10k$ worth of BTC sold it at a profit of $20k, bought back in but sold at a loss of and ended up with 12k$. Normally the profit would be 2k, if we tax per transaction, then you need to pay 3k in taxes from the first and no deduction, which means you're down to 9k after tax.

Besides, nobody will keep track of every single transaction and calculate what taxes they own, not with 30%.
Assuming this gets passed into law like this I'm curious how many will pay tax, if we have more than a hundred.

Okay, wow, this should have been the headline in at least a couple of news reports then. Saw this yesterday myself as was on Twitter working (heh) and everyone was sharing the news about 30% income tax (which seems now clarified to be profits) but the idea that this doesn't seem to be nett profit but individual asset profit/loss calculation, with no loss offset benefit, that's pretty crazy. Didn't know someone in Europe tried to do this too.

That'd be the gambling equivalent of calculating profit from every type of game, at every different casino. Imagine losing 10 hands of blackjack and winning just the one, and still paying tax on that single win.

It's definitely not going to pass in this shape.

cr1776

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Who wants a digital version of a constantly inflating rupee? Really, if people wanted fiat, they'd want something that can't be immediately seized or blocked like a digital version would be?

And that answers the question as to who wants it: the authoritarians in charge in India who want to skim a little bit off of every transaction and who want to be able to shut down the finances of any person who dares to disagree. It would then be just a simple push of a button if someone spoke out against them: sorry, your money is frozen and you have no recourse. Not to pick on India, since the same urge is beneath all the people who want to shut down bitcoin and replace it with digital fiat.

Stedsm

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https://cryptopanic.com/news/14155784/Thailand-Drops-15-Crypto-Tax-After-Pushback-From-Public

Power of public.
Indian salaried, upper and lower middle class are the ones getting fucked up due to this.

I see there are many celebrating that there's now a clear stance on crypto taxes, but literally wtf? 30% flat taxes?
Don't these guys have capital gains taxes already available on different asset classes available in India already?
This isn't good at all for crypto IMHO because this will only appreciate people to either leave India or evade taxes as true crypto lovers would never leave crypto.

stompix

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Blackjack.fun

Stupid press, in the same article:

Quote

In a significant move that is believed to have brought cryptocurrencies and non-fungible tokens (NFTs) under a tax net, finance minister Nirmala Sitharaman on Tuesday announced a 30 per cent tax on any income from the transfer of virtual digital assets, specifying that no deductions and exemptions will be allowed.

Two rows down:

Quote

“Any income from virtual digital assets is taxable at 30 per cent,” the finance minister said while presenting the federal budget. “There will be no deduction with exception of the cost of acquisition.

At least that's clear now, but this?

Quote

It was also announced that any loss made on the transaction of such digital assets cannot be set off against any other gain.

I don't remember which country in Europe made the same proposal as per transaction tax with no deduction, but it's still stupid, you might have to pay 30% on the profits from one good buy but you're not covered by the loss you made with other moves.
You bought 10k$ worth of BTC sold it at a profit of $20k, bought back in but sold at a loss of and ended up with 12k$. Normally the profit would be 2k, if we tax per transaction, then you need to pay 3k in taxes from the first and no deduction, which means you're down to 9k after tax.

Besides, nobody will keep track of every single transaction and calculate what taxes they own, not with 30%.
Assuming this gets passed into law like this I'm curious how many will pay tax, if we have more than a hundred.

UKprod

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Quote from: stompix on February 01, 2022, 02:49:56 AM

But on top of that, there is one more thing, all the news have mentioned "income", not profit.
If it's 30% of the income then tax might even slash all your profits and turn your crypto adventure into a total loss.
Rather than putting 1-3% and have some poeple paying this, they throw a 30% to ensure nobody will pay and everyone will be doing tax evasion.

Hindustan times reported this below.

“I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30%. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except cost of acquisition,” the FM said.

So effectively only profits will be taxed. But yes, we need to wait for the Finance Bill to be out to comment further.

Source: https://www.hindustantimes.com/budget/union-budget-2022-live-updates-nirmala-sitharaman-covid-vaccine-income-tax-pf-whats-costly-whats-cheaper-announcements-101643672370886.html

stompix

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Quote from: PX-Z on February 01, 2022, 02:41:12 AM

Is this a news from any of the media website? So where's press or news' source?

https://www.hindustantimes.com/business/crypto-tax-is-here-india-imposes-30-tax-on-proceeds-of-digital-assets-101643698281541.html

Quote

In a significant move that is believed to have brought cryptocurrencies and non-fungible tokens (NFTs) under a tax net, finance minister Nirmala Sitharaman on Tuesday announced a 30 per cent tax on any income from the transfer of virtual digital assets, specifying that no deductions and exemptions will be allowed.

The gifts are to be taxed on the hands of the recipient, she said, adding that there will also be a 1 per cent tax deducted at source (TDS) on the payments made for the transfer of digital assets. It was also announced that any loss made on the transaction of such digital assets cannot be set off against any other gain.

Wow, this is one huge %.

But on top of that, there is one more thing, all the news have mentioned "income", not profit.
If it's 30% of the income then tax might even slash all your profits and turn your crypto adventure into a total loss.
Rather than putting 1-3% and have some poeple paying this, they throw a 30% to ensure nobody will pay and everyone will be doing tax evasion.

UKprod

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I was watching the budget speech live and heard her say this. But nonetheless, will provide a source as well. Thanks for input.

Quote from: PX-Z on February 01, 2022, 02:41:12 AM

Is this a news from any of the media website? So where's press or news' source?

Just a heads up. Don't just copy something in the internet and paste it on your post without giving the source or you will be banned on this forum.

PX-Z

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pxzone.online

Is this a news from any of the media website? So where's press or news' source?

Just a heads up. Don't just copy something in the internet and paste it on your post without giving the source or you will be banned on this forum.

UKprod

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After a long time of confusion around crypto in India, today the Finance Minister, Nirmala Sitaraman, at the Union Budget presentation has announced that all the crypto gains would be taxed at 30% and only the cost of acquisition would allowed as deduction from sale consideration. However, losses will not be allowed to be set of with other incomes. Further, there is an intention to introduce withholding taxes at 1% on transfers. We would need to wait until the Finance Bill is released to analyze further on specifics and how this would work in practice.

However, the above cannot be construed to be completely legalizing crypto space in India, but rather just a move towards doing the same.

Further, from FY 2022-23 the RBI would be introducing the Digital Rupee which would be a centralized cryptocurrency controlled by the RBI. We would need to read through the Budget memorandum to understand the specifics of this introduction.

I will be reading through the Finance Bill and Budget memorandum and provide more details as the same is released. Stay tuned.

Sources: https://indianexpress.com/article/technology/crypto/budget-2021-digital-rupee-to-be-issued-gain-from-digital-assets-to-be-taxed-at-30-7751029/

https://www.hindustantimes.com/budget/union-budget-2022-live-updates-nirmala-sitharaman-covid-vaccine-income-tax-pf-whats-costly-whats-cheaper-announcements-101643672370886.html

Topic: [2022-02-01] Indian Govt to tax crypto gain at 30% and introduce Digital Rupee (Read 276 times)