India proposes 30% tax on crypto and NFTs income - page 2.

mia_houston

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Quote from: Vaskiy on February 01, 2022, 03:45:46 AM

Highlights on Virtual Digital Assets Taxation

India to launch digital rupee by next year(This is into discussion long back itself and some trails were going on with the country's CBDC)
30% tax on income from transfer of virtual digital assets such as cryptocurrencies and NFTs(This looks to be very high and no proper statement is revealed on the legality of cryptocurrency)
1% tax deduction at source on payments made related to purchase of virtual assets(Users who have already part of the centralized exchanges will suffer)
No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of acquisition. Loss from transfer of digital asset cannot be set off against any other income
Gift of virtual digital asset is also proposed to be taxed at the hand of the recipient(One way or the other through heavy taxation government try to have control over the market)

Source : India proposes 30% tax on crypto and NFTs income

I also just read the news in the local media, what India is doing is actually a good thing for the crypto community in the country and at least the Indians have no problem in using crypto so far because they have been protected by the country laws because has clear regulations, but unfortunately the Indian government is too high a tax sentence at the moment, I think that too high a tax will make Indians even more suffocated, and frankly it will make them think twice about using crypto rupees later.
What I don't understand about the regulation, is that it says every transfer will be taxed without any deductions or exceptions, does this mean all transactions will be taxed, even if the transaction may only be worth a few rupees?

It looks like the 30% tax will be the highest tax on income in India and make officials will be richer in the future Grin

.

Gamerholic

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I don't think such a high tax would be good for this industry in India. Rather, it looks more like a step forward in the matter of regulation - since the tax rate in itself says that the state likes the idea of regulation rather than a complete or partial ban. In my opinion, the rate is still high, but if it is halved, then it will be possible to satisfy all parties interested in clear and understandable market rules.

virasog

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Quote from: ?? on ??

good news because the Indian government has legalized bitcoin, and has accepted bitcoin, but in my personal opinion the proposal submitted by the Indian government is too expensive, the 30% tax submitted is too heavy, I am very sure all will reject the proposal from the Indian government, If the Indian government proposes a 15% tax, it is very likely that their citizens will accept it, but if it is 30% it is very difficult.

30% look like a joke and this is not a reasonable amount to be taxed. Too high tax rates show that government is not really interested in making the crypto to be widely used and it will only discourage people from using the crypto publicly. Citizens of India maybe be happy with current situation where they do not have to pay any tax on the crypto at the moment. I do not see this as a good news for the citizens.

avikz

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Quote from: Luzin on February 01, 2022, 08:27:31 AM

Quote from: avikz on February 01, 2022, 07:41:11 AM

I have just noticed it while checking the budget highlights. 30% tax on the gains without any deductible expense is really high. But considering some countries like Japan has higher tax rate of 52% on crypto income, I would rather be happy with 30%.

Looks like that's just a plan that hasn't been passed. 30% is very large let alone 52% like Japan, it's like wanting to kill people in the crypto business. I'am actually do not really agree, in my country crypto taxes have not been made specifically. But it goes into income tax.
Maybe if it's too big a tax then there will be a new problem. Crypto players will try to avoid taxes. They will try to hide and claim not to have crypto. If a country dares to ask for a crypto tax, they should dare to facilitate everything related to crypto.

I wouldn't disagree with your points. Till date, I have been paying my taxes on crypto income, but as a part of the income tax. Even though there was no legal framework available around crypto, I was adding my gains with my income and paid taxes accordingly. This is just to ensure that I do not stand on the wrong side if the law.

Recently our Central Bank and the entire banking lobby was pushing really hard to impose a blanket ban on cryptos and also advised to take punitive actions against crypto holder.But instead government has imposed a tax on it. I am happy because Indian government is going to recognize crypto and not going to ban them.

ChiBitCTy

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I am sadly not surprised to see this news and I appreciate you for sharing it. This is of course nothing new for India to do. The VAT/ import taxes India already requires is crazy so this nothing surprising in that sense. I’m curious if they plan on charging the same amount for the digital rupee they plan on creating, or will they give that a lesser tax ?

Luzin

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Quote from: avikz on February 01, 2022, 07:41:11 AM

I have just noticed it while checking the budget highlights. 30% tax on the gains without any deductible expense is really high. But considering some countries like Japan has higher tax rate of 52% on crypto income, I would rather be happy with 30%.

Looks like that's just a plan that hasn't been passed. 30% is very large let alone 52% like Japan, it's like wanting to kill people in the crypto business. I'am actually do not really agree, in my country crypto taxes have not been made specifically. But it goes into income tax.
Maybe if it's too big a tax then there will be a new problem. Crypto players will try to avoid taxes. They will try to hide and claim not to have crypto. If a country dares to ask for a crypto tax, they should dare to facilitate everything related to crypto.

avikz

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Quote from: Vaskiy on February 01, 2022, 03:45:46 AM

Highlights on Virtual Digital Assets Taxation

India to launch digital rupee by next year(This is into discussion long back itself and some trails were going on with the country's CBDC)
30% tax on income from transfer of virtual digital assets such as cryptocurrencies and NFTs(This looks to be very high and no proper statement is revealed on the legality of cryptocurrency)
1% tax deduction at source on payments made related to purchase of virtual assets(Users who have already part of the centralized exchanges will suffer)
No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of acquisition. Loss from transfer of digital asset cannot be set off against any other income
Gift of virtual digital asset is also proposed to be taxed at the hand of the recipient(One way or the other through heavy taxation government try to have control over the market)

Source : India proposes 30% tax on crypto and NFTs income

I have just noticed it while checking the budget highlights. 30% tax on the gains without any deductible expense is really high. But considering some countries like Japan has higher tax rate of 52% on crypto income, I would rather be happy with 30%.

While the tax rate is on the higher side, I am happy that the Indian government is finally going to recognize cryptocurrency. That's important considering the government has faced a huge pressure from the banking lobby. So it's a net positive for me!

king4ty

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It is obvious, since the country have tried to stop cryptocurrency times without numbers and failed. They are looking for alternatives to discourage people from crypto activities and investment, by imposing heavy tax.
Unfortunately this is not too good for all crypto communities in India, because only the whales can survive with this kind of policy. Come to think of it, it's also a good news as the government don't have a choice as cryptocurrency is here to stay.

yazher

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Sadly this might be approved faster than their main concern about their countries because it involves lots of money. Too bad for the NFT traders out there and they cannot do something about it. Let's just hope they won't gonna passed this kind of insane regulation because if they approved such a thing, the other countries might follow them as well because when they see the huge amount of money India had gathered, they are hungry to do the same thing in their countries too.

DapanasFruit

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So this can be the compromise the government of India is willing to imposed in the name of legalizing cryptocurrency. In other words, things just boil down to tax or the money the government can be able to get in the expanding cryptocurrency industry within India. Though we can still consider this ad a victory for cryptocurrency enthusiasts and supporters in India, it comes at a hefty price. I am hoping there can be amendments as time goes on as this 30% tax can be a stifling agent instead of being a developmental one.

witcher_sense

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Quote from: Vaskiy on February 01, 2022, 03:45:46 AM

India to launch digital rupee by next year(This is into discussion long back itself and some trails were going on with the country's CBDC)

I guess that the government of India won't tax on income from transfers of digital rupee because they want it look more attractive than heavily taxable bitcoin. Moreover, you won't get profit by holding government's money anyway, so there will be only losses that are not taken into account.

Quote

[30% tax on income from transfer of virtual digital assets such as cryptocurrencies and NFTs(This looks to be very high and no proper statement is revealed on the legality of cryptocurrency)

It seems government of India wants their people to never sell their bitcoin because the benefits of holding are now outweighing even more the benefits of short-time profits in terms of weak currency such as rupee.

Quote

1% tax deduction at source on payments made related to purchase of virtual assets(Users who have already part of the centralized exchanges will suffer)

Another reason to never use centralized exchanges when dealing with government-resistant decentralized money.

Quote

Gift of virtual digital asset is also proposed to be taxed at the hand of the recipient(One way or the other through heavy taxation government try to have control over the market)

I can't believe they come up with such a ridiculous proposal and I am wondering if gifts of cryptocurency from relatives are subject for taxation in India.

fiulpro

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Why this is outrageous?
- 30% tax means government is just being super corrupt with power and trying to get money out of people who are struggling to make some money in crypto or might have made a fortune perse.
- Most taxes are around 10% this shows their disregards for cryptocurrencies they are just showing that they need them for only taxes and does not actually respect cryptos
- we are in the middle of the pandemic and they should cut some slack as well other than discourage people like that
- would they be imposing taxes on the digital rupee as well? We have to wait and see.

Emulion

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It's outrageous, this will discourage any crypto or NFT owner, or they will start doing anything in their power to hide things from the government. It's unfortunate.

sunsilk

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As they've proposed it, this clears up the confusion of many of what's really happening in the crypto scene in India. They now have seen the potential of the crypto market that they can't just ignore anymore. And since most of the countries are still experiencing crisis specially in finance.

It's the right time for them to do this. Although the percentage of taxation seems to be high, I guess they'll eventually pull down that soon when they've realized that it's too much for their people.

cheezcarls

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Quote from: Vaskiy on February 01, 2022, 03:45:46 AM

Highlights on Virtual Digital Assets Taxation

India to launch digital rupee by next year(This is into discussion long back itself and some trails were going on with the country's CBDC)
30% tax on income from transfer of virtual digital assets such as cryptocurrencies and NFTs(This looks to be very high and no proper statement is revealed on the legality of cryptocurrency)
1% tax deduction at source on payments made related to purchase of virtual assets(Users who have already part of the centralized exchanges will suffer)
No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of acquisition. Loss from transfer of digital asset cannot be set off against any other income
Gift of virtual digital asset is also proposed to be taxed at the hand of the recipient(One way or the other through heavy taxation government try to have control over the market)

Source : India proposes 30% tax on crypto and NFTs income

As far as this is a welcoming development for the Indian crypto community, the 30% tax on cryptos and NFTs are somewhat really stings them a lot and a major drawback. After previous bad news from the government that they wanted to totally ban crypto and criminalize those who are buying and holding it, it finally shed some light as they took time to understand the good side of cryptocurrencies and NFTs. Much better than China who totally ban cryptocurrencies to their citizens.

Legalizing cryptocurrency trading in India is going to be the first things first for them before implementing the tax. However, I am in favor of the exorbitant 30% tax. It's much worse if they're planning to tax realized crypto gains too.

Konfusioon

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Does anyone know how much more is 30% compared to other comparable income taxes in India?

rhomelmabini

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April 1st (like a fool proposal) isn't that long before this comes into effect and I think it's a ridiculous one tbh. It may not have been implemented yet but I think it will raise some eyebrows to the masses especially to Indian citizens. Was it clarified if what incomes it will be taxed to? Just transferring an asset is too vague, I suppose.

pawanjain

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Quote from: Vaskiy on February 01, 2022, 03:45:46 AM

Highlights on Virtual Digital Assets Taxation

India to launch digital rupee by next year(This is into discussion long back itself and some trails were going on with the country's CBDC)
30% tax on income from transfer of virtual digital assets such as cryptocurrencies and NFTs(This looks to be very high and no proper statement is revealed on the legality of cryptocurrency)
1% tax deduction at source on payments made related to purchase of virtual assets(Users who have already part of the centralized exchanges will suffer)
No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of acquisition. Loss from transfer of digital asset cannot be set off against any other income
Gift of virtual digital asset is also proposed to be taxed at the hand of the recipient(One way or the other through heavy taxation government try to have control over the market)

Source : India proposes 30% tax on crypto and NFTs income

I was about to post this information here but you made it first. Well, this news was quite surprising to me but at least it brings some positivity to the table.
Although 30% from the net profit is a large share to give to the government as tax but at the same time it shows that crypto trading will be legalized in India.
In my perspective, the first thing to do is to get crypto trading legalized and it seems that we are one step closer to this goal.
The next step would be to make the government decrease the tax percentage on net profit which can happen after several debate over the next few years.
I am particularly happy for the fact that amongst this dump, India is trying to shine some light over legality of crypto trading.
I "hope" this creates a chain of positive events for cryptocurrencies and we never see this bottom again.

Jawhead999

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It's really ridiculous fee was proposed by India, 30% is really high if they charge any income made from crypto and NFTs. The thing is you're not only pay income tax fees if you've made profit from crypto, you need to pay fees conversion fiat to crypto, trading fees, and withdrawal fees. Also not all people who bought crypto and NFT will made profit, while government doesn't know crypto and they will enjoyed the profit (tax) when someone made profit from crypto.

Vaskiy

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Highlights on Virtual Digital Assets Taxation

India to launch digital rupee by next year(This is into discussion long back itself and some trails were going on with the country's CBDC)
30% tax on income from transfer of virtual digital assets such as cryptocurrencies and NFTs(This looks to be very high and no proper statement is revealed on the legality of cryptocurrency)
1% tax deduction at source on payments made related to purchase of virtual assets(Users who have already part of the centralized exchanges will suffer)
No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of acquisition. Loss from transfer of digital asset cannot be set off against any other income
Gift of virtual digital asset is also proposed to be taxed at the hand of the recipient(One way or the other through heavy taxation government try to have control over the market)

Source : India proposes 30% tax on crypto and NFTs income

Topic: India proposes 30% tax on crypto and NFTs income - page 2. (Read 325 times)