Topic: 30% tax on crypto income in INDIA (Read 349 times)

crypto miners are subject to a 30% tax in India even though the 30% can be said to be quite large but if the adoption process is carried out widely then it will not be a problem as long as bitcoin can become legal in the country and no longer gets opposition from various groups because it can affect the price bitcoin in the stock market, of course this is a good step for bitcoin to again increase public trust while at the same time having a positive impact on bitcoin with the implementation of taxes carried out on crypto in a country

I remember that I read an article time ago (which I can't find right now) that was explain why and how people are willing to pay taxes up to 15% if I remember properly, when taxes go above 15% usually people will start finding ways to declare less, etc, because they feel it's too much. Of course the more they increase taxes, the more people will start declaring less than what they should actually declare to save some money.

This is the reality of India who hold a good volume of cryptocurrencies. India too have a plan of having its own CBDC which too is a reason for the heavy taxation on cryptocurrency. In an interview the RBI deputy governor talked about the country's CBDC.

Commenting on different CBDC models, Deputy Governor pointed out that there are many “uncertainties in terms of which model works, which design works well in terms of its impact on the banking system, on data privacy, on monetary policy.” He opined:

30% is a robbery, and it is obvious that such large taxes are intended to discourage people from dealing with cryptocurrencies. I will say that even 10% is a lot, 5% is the most adequate tax. If there is a good assets in cryptocurrency, then moving to another country is a way out, but it is not always easy, especially when there is a large family, children who will need to adapt to a new place.

When you have dumb politicians who are making these rule set, people will move out to safer zones where the taxes are really low or tax free heavens. A few of my friends in the cryptocurrency space moved to Saint Kitts and Nevis where there is no income tax and some of them moved to UAE. If not for the high taxes, would have stayed back but now they force everyone with substantial amount to move out of the country. I would not mind paying 10% to 15%, but 30% is too much of money for the hard work and risk we take.

The government does not want anyone to invest in cryptocurrency and this is why they want 30% on every transaction. From July this year 1% TDS will be also charged. Indian cryptocurrency exchanges have already reported a dip in their volume and it might increase more after July. This is a bad decision and it will hamper the growth and development of India in the future.

How can you tax something at 100%? If you tax 100% of the gains it means that they take everything, so why should someone even take the risk to buy crypto in that case? It also would be a ridiculous way to ban cryptos, at that point they can simply say they are banned, just like China did, hiding behind a "100% tax rule" doesn't make sense.

Do you think it is easy to leave the country? I think people in India prefer to leave crypto than to leave their country. Leaving the country isn't the solution, it is the same as you are running away from the problem.

Clearly Indian government wants all crypto investors to give up and leave crypto assets. It is a very unfriendly way from the government, they maybe want to increase it again after they decide to increase to 50%. Their target seems 100% for crypto tax, it is absolutely the situation when all crypto investors have no choice to survive. 100% = ban. 

Or simply people will completely stop declaring any crypto possession and will find a way to spend cryptos without withdrawing them from the exchanges. 30% is already crazy, 50% it really means they live on a different planet.

Thats ridiculously high. Also Ive seen that even you loss or not gained from profit will be taxed regardless you gain and loss again. Damn that should be revised, of course how can government taxed someone who loses the money he do trading to earn and tax are only for profits or gained or income but losses? I am not favor with India huge tax. They should do what Indonesia has implemented.

The 30% tax rate does not seem to satisfy the Indian government, recently it has been reported that they want to increase the tax from 30% to 50%. This is crazy, they are clearly trying to discourage Indian investors and force them to give up crypto instead of enacting a law banning it. If this passes, it will be the end of the crypto market in India.
https://beincrypto.com/indian-ruling-party-mp-suggests-increasing-crypto-tax-from-30-to-50/

Anyone who is holding a much larger holding of cryptocurrency will move out of the country rather than paying 30% tax because you are bound to pay irrespective to your profit or loss from what i understand. I know a few individuals who already moved out to tax free heavens and i know a few planning to move out of the country simply because of 30% tax which is really high with the amount of crypto they are holding.
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I think it's almost kind of funny how governments always think that simply raising taxes is the solution for everything, and at the same time the more the taxes are high, the more people will do everything in order to avoid paid them. Several countries are already losing crypto-millionaires because of the crazy taxes, and some smart countries are welcoming this new wealthy generation that is going to invest and spend money in their countries.

Anyone who is holding a much larger holding of cryptocurrency will move out of the country rather than paying 30% tax because you are bound to pay irrespective to your profit or loss from what i understand. I know a few individuals who already moved out to tax free heavens and i know a few planning to move out of the country simply because of 30% tax which is really high with the amount of crypto they are holding.

Leave the country for now

To be honest I'm very surprised to see that 7.30% of the Indian population own crypto, it's way more than what I was expecting. Anyway I don't change my mind, we always looked at China as one of the most important countries for the crypto world, they banned bitcoin, closed down exchanges and mining factories, and yet we're still here. At this point I'm curious to see if the Indian government will understand that this 30% tax is not gonna help anyone.

30% is too much man, I would be looking to get the hell out of there to be honest. Many countries exist with 0% taxes on bitcoin. I am in the UK where we pay 20% on profits. If it went as high as 30% I would look to move.

A too bad attitude from the government, 30% is a big number, are they trying to kill every crypto user in India? If the government dislikes crypto, it is better to ban it than to kill crypto users with big taxes. If I were Indian people, I'll try to gather crypto people and try to criticize the government through discussion or demonstration. I have no intention to provoke, but I assume it is a realistic solution.

I mean I wouldn't say its not very important? Because according to statistics, India has the most "number" of people owning crypto. Just by sheer number of people, it has the "largest user base", 100 million, compared to the ~25-30 million in USA. Sure, USA still has the most trading volume and India isn't even close, but this growth in India has been just in the past 1-3 years. The growth is exponential, mostly due to the median age of Indian population being 28.4 yrs (Source: worldometers), and them being eager to learn about new technology.



So I wouldn't really say the country with the most people adopting and trying out the technology is "not very important", it might as well be in the coming years. And this 30% tax and TDS is definitely going to hurt the enthusiasm among adopters.

With the second largest population in the world, it is clear that India is the main goal of crypto progress after China, of course, but if you look at the information circulating, the largest crypto user in the world is India. India has come a long way for the advancement of renewable technology and of course also about crypto. so naturally the advancement of crypto technology in India is progressing rapidly.

so maybe what the op said about 30% of a person's income there is spent on crypto, obviously as long as it is for progress and the profits to be obtained, of course it will be useful for the progress of the economy in the country in the future because of the influence of crypto. happy if the country wants to support and mobilize for convenience in the field of crypto, of course.

Meanwhile, there are more than 300 million cryptocurrency users worldwide and more than 18 thousand companies already accept cryptocurrency payments. and this will continue to evolve according to the circumstances that occur.

Its not the 30% that you need to worry about, the more pressing concern is that you cannot set off losses make in Crypto with your other income, specifically, you can even offset losses in 1 pair eg BTCUSDT to ETHUSDT.
another major concern is 1% TDS on every trade, this is a death cross for day traders.

We really hope that there will be many adoption processes from various developing countries in the world towards bitcoin, even though as happened in India the application of a 30% tax from crypto miners to the local government is certainly a big price but indirectly it can at least re-increase public trust in bitcoin with the adoption by several countries as happened in India, with this step at least it can increase public confidence in the crypto world today

Paying taxes is good because paying taxes is the duty of people and businesses to help the country develop. But with a tax rate of 30% is really too high compared to other professions so not everyone who invests in crypto has a high income. This will really affect the crypto market in the long run, if other governments will also apply the same or even higher tax rate it will cause a lot of difficulties for investors and the market.

pic: internet

What do you mean? How can any government tax someone over money they lost? They tax the gains, if you have lost money than there is no gain, so of course you are not going to pay. Otherwise it would be like asking for tax money to a business that when bankrupt, how are they supposed to pay? And especially, why should they?

move country! like this is a brilliant idea lol. I feel that the crypto tax imposed on the Indian citizens is very large, what about those who make no profit (loss) with their crypto investments, are they taxed too? Many countries nowadays only think about the obligations of their citizens but do not think about the rights of their citizens.

The 30% tax imposed by the Indian government on miners is indeed very large with this amount but this provides a distinct advantage for the crypto world where we can say that bitcoin is starting to be accepted by the public although not yet fully, where only certain countries have adopted bitcoin such as what India has done, with the taxation.we really hope that bitcoin can last for a long time in the country, moreover bitcoin is currently experiencing such a sharp decline.so that with the adoption it can at least increase the price of bitcoin on the stock market global

Even the government is now more concerned with the income of the traders so that they will try to profit from the traders by applying taxes. It might be understandable if the government legalizes crypto trading and provides permits and guarantees for the safety of traders on a (even if centralized) platform, but if it's 30% then I believe the government seems to want to prevent the growth of crypto there.

Income tax can be expected by the government, not within reasonable limits. If that's too high then the OP really should keep the asset without selling it to avoid taxes. You can convert it to fiat at any time when you agree with your country's tax laws.

Most likely they would touched up centralized platforms basing up on calculation on someones who had been dealing with active fiat conversions which would really be that possible through these platforms.

If you do ask for some possible sources then i cant think off any possible ways yet detection specifically with these transaction is impossible.Try to look on other taxation thing just like in US
where everything cant really be filtered out perfectly due to decentralized aspect and anonymity of crypto which make things more harder.

if that should happen in what way government who is calculating the percentage of individual cryptocurrency, is any detecting machine or device that monitors each wallet of investor, 30% of income, if that should be happen, is for the working class or any citizens, i will slightly believe or agree with you, i think something's is missing somewhere else

To date, the Indian government hasn't legalized crypto in India.

And still, charging 30% tax on crypto trading.

I personally think that the Indian government should focus on its own fiat currency INR, rather than making crypto taxable.

The second important thing is as we all know no one control Bitcoin's Price, Bitcoins Production, and even Bitcoins distribution, in such a scenario how any government can charge this much amount of tax for no reason.

The Indian government has no solid-state framework for Crypto regulations. So the government is trying to increase taxes so that users cannot get into crypto.

But this is much more dangerous for the upcoming generation. As crypto is changing the ways of financial activities, it is very hard for any government to monitor, at the same time due to the fundamental specifications of crypto it is hard to ban it.

In India there is more corruption and black money accumulation. The accumulated black money were much on the Switzerland banks as they don't reveal identity of the people. In specific most of the funds were of the politicians. Now the government fear that those accumulated black money might enter the country in the form of cryptocurrency. The government believe that high taxation will make people stop using bitcoin, but the hard reality is different.

The title says 30% tax, and I wanted to say it's unreasonable and too high, but then you write that it's "up to 30%", leading me to assume that the tax depends on the income, which is a very different story. Then I tried googling it, and it seems that the 30% tax rate is flat, not progressive. If that's indeed the case, meaning that no matter how little you earn, you still need to pay 30%, it's truly unreasonable, and I'm sorry for that. Then I'd investigate the prosecution for people who don't pay it: what's the worst that can happen, and how often anything happens in practice? It really depends on how common it is to not pay taxes, especially if you don't earn that much (very common in my country), and then you have to make a personal decision. I'd think in the following manner:
- if you don't earn much on cryptos and the worst that can happen is a fine which you'd be able to pay, I'd just not pay taxes
- if you don't earn much of cryptos, but the punishment for tax evasion is very significant, I'd stop earning with cryptos
- if you earn significant amounts of money in cryptos, maybe paying a 30% tax is okay, so that there're better roads, healthcare, education for people in your country
- if you earn significant amounts of money in cryptos, but are not willing to pay 30%, why not either relocate to another country or register your business activity in another country which has friendlier crypto policies?
In any case, op, good luck!

This is going to impact only the Indian cryptocurrency market that, with all due respect, it's not very important. We survived the actual ban from China, not for bitcoin only but for mining as well, having or not having India won't change things, I just feel sorry for the Indian people.

It is true that India was not in favor of crypto from the very beginning, but I think the Indian government understands that they cannot ban crypto. People will still figure out how to use crypto in any form, so taxing is the method they devised and taxing 30% is too greedy.
This is really terrible for Indian investors but to survive and continue the market this is probably the only way they can accept.

Indian government is not in favor for crypto in the first place so don't expect any positivity from there government because they only doing the tax law to control there citizen for using cryptocurrency. India government is very strict when it comes to there economy. This is really a bad news for crypto userin India but it's much better than completely banning cryptocurrency to there citizen. India is not prepared for crypto acceptance like EU so we should expect this kind of news or more harsher law to moderat crypto use in the future.

This is not really good news for India, I think people will refrain from investing in it for huge taxes. This could hinder the progress of cryptocurrency. Even then, a Member of Parliament from India has been thinking positively about it. He has already spoken about it in Parliament. "Government doesn't understand Crypto hence the strictly regulations": Priyanka Chaturvedi

This is what was mentioned in this website:


It seems that India has now regulated the taxing purposes of cryptocurrencies in their countries including all NFTs. This can definitely backfire such country especially that lots of their citizens are relying on cryptocurrencies for alternative means of earning money. Just a quick question, will the government be able to track down earnings from campaign signatures? I wonder on how will be the implementation of this law- like would they be strict as to really track down every cryptocurrency earning?

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¹: https://www.wionews.com/business-economy/india-30-tax-on-profits-from-cryptocurrency-assets-from-april-1-466277

if they have the knowledge to invest every month by putting aside their income then this is a good thing for india, as this will rub off on their friends and eventually most of the population. by investing on the right track, their money will be safer to keep in the long term. therefore it takes a community to provide sharing to beginner bitcoiners so as not to fall into misleading knowledge.

I'm wondering how they're going about monitoring and enforcing this...  Sure, it might be easy to get the exchanges to force this tax on this clients, but what about everyone else?  Certainly websites based in India aren't suddenly charging 30% more are they?  Is this the sort of thing where people are going to be taken to jail for using p2p services?  It seems like a knee jerk reaction to trying to get some funds from wealthy investors to me.  I doubt they're going to be wasting time and money tracking small purchases done by their citizens, but who knows...  The world is becoming increasingly hungry for people's private data.  Even those I thought once respected privacy are now obsessed with tracking to the point it's damaging operations.

I'm not sure about the second option for a country like India, I try to explain myself better: a EU citizen for example can easily go to another country within the EU without needing a permit/visa; people in the US can go to another US state with different rules; I'm not sure if Indian people can actually move somewhere else as permanent resident without a visa. Of course it all depends on the amount of money we're talking about, $100k for example may look like a lot of money but in reality in many countries that's nothing. If we're talking about several millions than it's a totally different story.   

I've read many stupid things about bitcoin and cryptos, but here we just got to another level. Those people have no idea what hodling means.

Wait there's more.

The 1% Tax That Has India’s Crypto Industry Predicting Chaos
Source

Aside from 30% tax you would still have that additional if it do exceed 10,000 rupees on each transaction.
P2P is the key and you could also HODL or move out on other countries but if you do have that big amount. 

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.

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.

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.

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.

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

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.

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.

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.

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.

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:


goodie …

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.

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.

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.

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.

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

"Indian tax officials say crypto profits are like lottery wins"  - 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. 

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

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.

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.