30% tax on crypto income in INDIA - page 3.

Yogee

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1. Hodl and join the petition to drop the tax rate.
2. Switch to trading in other markets while the tax code has not been revised.

Quote from: Sterbens on April 04, 2022, 01:57:29 PM

Quote from: poonam8288 on April 04, 2022, 12:25:45 AM

At present we all know that in India, up to 30% of one's income is spent on crypto. And it has affected every Indian who works in the crypto industry. If you can guide further on how to go further now. Give some suggestion.

Why not share it in multiple wallets and not exceed 30% so you can be safe without worrying about big taxes?

What do you mean by "not exceed 30%"? Does total amount really matter? I think distributing your crypto to different wallets won't change anything at all since the the tax will still apply on any crypto income at a 30% flat fate.

Fortify

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Quote from: mk4 on April 04, 2022, 01:24:58 AM

You pretty much have 2 choices.

1. Only invest the right amounts whereas you wouldn't be forced to sell(hence get taxed) if it's the case you end up needing money. Pretty much always have enough cash ready for your needs and for accidents and such.

2. You move countries.

Anyone who had a substantial amount of money, possibly earned from earlier Bitcoin investments which allowed them to move from India, likely would have done so already. Anyone left over probably only has negligible amounts or would not be able to move anywhere reasonable with the amount they have. These sort of taxes are more likely to move the trade underground and you might even find exchanges that refuse to cooperate with the India tax authorities depending on what is a more profitable outcome. It's actually a bad move by India and they would have done better to consider it separately from income with a lower tax rate of say 5 or 10% if they really want to permit a new market - 30% is pretty greedy.

ololajulo

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I dont think the 30% tax target the workers from cryptocurrency project, it is again other countries tax reform in crypto. India might likely enforce indigenous exchange on citizen that will give access to everyone portfolio,the record of their trade and the sum of the gains. So at a certain period in the year, a good exchange should provide the transactions in the year with understanding of the amount of tax to be paid to the Government. So 30% of the profit over the year will be paid to the government.

Sterbens

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Quote from: poonam8288 on April 04, 2022, 12:25:45 AM

At present we all know that in India, up to 30% of one's income is spent on crypto. And it has affected every Indian who works in the crypto industry. If you can guide further on how to go further now. Give some suggestion.

Why not share it in multiple wallets and not exceed 30% so you can be safe without worrying about big taxes? In addition to the above for you to move countries, you should probably avoid centralized exchanges and always play for a fairly small value. Very unpleasant, right? periodic monitoring by the government to review how much you earn in crypto. Just avoid the government setting a benchmark of 30% tax. For example, you divide it periodically from 15 - 20%. lol

uneng

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Quote from: mk4 on April 04, 2022, 01:24:58 AM

2. You move countries.

Best alternative without any doubts, otherwise there will be a lot of pain, suffering and deception living in a country which has no respect and consideration for crypto adopters, who are leading the country to the future of finances.

If the government acts with iron fists, it's because most citizens accept anything that is imposed to them. So for that minority who doesn't want to pay the price for the omission and apathy of the majority, the option is to leave to a country where their demands will be supplied.

Indian government should be concerned in stopping altcoins' scams and ponzi schemes on their territory instead of punishing every crypto enthusiasts with abusive taxes.

RapTarX

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I wouldn’t encourage you to hide your transaction and avoid taxation. There are ways but you must follow the rules of the countries. Though I don't have a huge investment in cryptocurrency now, I'm considering long time investment from now on because I don’t want to get taxed 30% of my profit.
Rather, focusing on long time; I believe this rule is subjective to be amendment later on.

virasog

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Quote from: mk4 on April 04, 2022, 01:24:58 AM

2. You move countries.

Moving country is not that easy even if you have a lot of money in crypto.

This act of the government will only open the black market and people will try to hide their crypto transactions where ever possible. The people of India can only hope that the Indian government realizes their mistake and make the crypto taxable system fair.

Haunebu

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The pathetic Indian government tried banning cryptocurrencies multiple times in recent years and failed which left them embarassed due to which they came up with this alternative solution which is a smart strategy.

However, I feel that solutions are available for this particular issue also which is why I wouldn't really worry too much about it.

DdmrDdmr

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There are lies, damned lies and statistics. MTwain

There is a more evil twist to all this though: In many countries, you pay your taxes based on your overall crypto results over a given period of time (i.e. the prior year), deducting losses from gains in an overall crypto profit/loss result.

The scenario in India seems to consider each asset on its own, so losses on one coin/token do not counter the profit made on another coin/token.

See: https://timesofindia.indiatimes.com/business/india-business/cryptocurrency-clarification-explained-loss-in-one-crypto-asset-cant-be-set-off-against-another/articleshow/90365728.cms

There is a chance to go for 20% tax instead of 30% if you hold for 3 years or more before the sale:

https://cleartax.in/s/cryptocurrency-taxation-guide

goodie …

bitzizzix

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India plans not to ban crypto but introduce new tax rules in the 2022 budget, and impose a 30% tax on profits made from virtual digital assets including crypto and NFT.

I personally think that a higher tax rate is much better than a complete ban on the ever-expanding crypto, as there are also some countries where trading or using crypto is prohibited and that's sadder.
and has become a rule that must be obeyed even though it is heavy and hopefully over time there will be considerations and taxes will be lowered.

suryana

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with the determination of taxes from crypto proceeds in India, crypto is now automatically starting to be accepted among the general public as is the case at this time where 30% of the proceeds from the digital currency business are taxed by the Indian government, with the acceptance of the crypto world in South Asian countries This can at least re-increase public confidence in bitcoin, which is currently starting to get opposition from various circles, but India is currently receiving the results of crypto mining in the country.

Doan9269

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India currently is consulting the IMF, World Bank and it Financial Regulation Institutions on how to put in place the required policy that will guide crypto in the country and also, they stated that 1% on every transaction made will be levied on the crypto industry aside the 30% tax in existence. Although i enjoy the fact that the country permit crypto activities to be going on but it has also been very strict to it tax regulation.

Quote

Indian Finance Minister Nirmala Sitharaman has said on several occasions that the government has not decided whether to regulate or ban crypto. However, in the meantime, crypto income will be taxed at 30% and a 1% tax deducted at source (TDS) will be levied on all crypto transactions. https://news.bitcoin.com/indian-government-consulting-with-imf-world-bank-on-crypto-policy/?utm_source=thecryptoapp

batang_bitcoin

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Quote from: poonam8288 on April 04, 2022, 12:25:45 AM

At present we all know that in India, up to 30% of one's income is spent on crypto. And it has affected every Indian who works in the crypto industry. If you can guide further on how to go further now. Give some suggestion.

Since you've mentioned working in the crypto industry, if there's a possibility that you can ask for your employer to get paid in fiat then do it.
And once you receive fiat then that's what you're going to use for buying the crypto that you want to hold. Holding isn't going to make you tax I think until you start selling it while that law is active and while you're in India.

Kakmakr

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I mean.... how stupid are the government officials in India?

"Indian tax officials say crypto profits are like lottery wins" Roll Eyes

- https://qz.com/india/2144325/how-will-indias-crypto-investments-be-taxed/

I cannot for the life of me, understand how profits from Forex exchanges and Coimmodities can be taxed much lower than Crypto currencies, when Crypto currencies are just a currency.commodity. Huh

onecall123

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HODLers can easily solve the problem if they are Bitcoin holders. HODL, don't sell.

Most people will do anything to avoid paying large taxes and fees. To hold and trade cryptocurrency, they will do anything. Because 30% is absolutely ridiculous. It's just theft, and crypto's theft is blatant. At least it's not a ban. Whatever the case may be, the tax needs to be tierable, not a flat rate for everyone. Taxation on higher profits should be higher, so small investors and traders will not be adversely affected.

For more suggestions, you may follow this discussion: India's 30% tax on income from digital asset

mk4

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You pretty much have 2 choices.

1. Only invest the right amounts whereas you wouldn't be forced to sell(hence get taxed) if it's the case you end up needing money. Pretty much always have enough cash ready for your needs and for accidents and such.

2. You move countries.

poonam8288

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At present we all know that in India, up to 30% of one's income is spent on crypto. And it has affected every Indian who works in the crypto industry. If you can guide further on how to go further now. Give some suggestion.

Topic: 30% tax on crypto income in INDIA - page 3. (Read 349 times)