Topic: India proposes 30% tax on crypto and NFTs income (Read 325 times)
This indian government just wanna rob people's asset but they can't do that directly and they were starting to put very high tax to the crypto users. They were robbing the indian users. Why don't they even put 100% tax. that was a non sense tax for the crypto users. that looks so stupid. They just want to rob their civilians. I meant that's not mean if crypto legal but putting very big tax to the crypto. This is what i have called that shady government.
Pretty harsh if the tax is just on the transfer. Short term profits in the states can lead to 40% on the profits. Anything after 12 months is much lower. Is the 30% on the principal or the net profit?
Indian government to make set of guidelines before the start of July. Government have requested the Central Board of Direct Taxes to do it. It is said that any and every product evolved out of technological innovation to be Virtual Digital Asset. How this gets to be right ?
Nothing seems to get changed
Nothing seems to get changed
- The government is unlikely to reduce the TDS which is 1%
- 30% capital gains tax is also unlikely to be reduced.
- No exemptions planned other than for hospitals using blockchain technology.
- Presenting digital assets as gift have increased, and government is to tax on the gains out of gifts.
- No timeline for the regulation of cryptocurrency.
I think this will cause bigger problems, I agree if the tax is a sign of the legality of a country.
But the problem is the tax paid in cryptocurrency will be difficult to estimate, even if it is paid, how to make it real money? definitely not the same price.
The second problem is high tax fees, I believe NFT is filled with cryptocurrency communities where they really like cheap goods to resell at high prices in the future, If the tax is determined in every transaction, then it will make NFT very expensive and possibly no one bought it.
But the problem is the tax paid in cryptocurrency will be difficult to estimate, even if it is paid, how to make it real money? definitely not the same price.
The second problem is high tax fees, I believe NFT is filled with cryptocurrency communities where they really like cheap goods to resell at high prices in the future, If the tax is determined in every transaction, then it will make NFT very expensive and possibly no one bought it.
- 30% tax on capital gains proposed as Crypto Tax Legislation Becomes Crypto Law today
- India’s crypto taxation law will now take effect on April 1.
- The government has not accepted any suggestions of the crypto industry to tone down the crypto taxation
- The opposition members reacted strongly to the bill, calling out the lack of clarity in defining crypto in the bill
- The finance minister said, we have been very clear that consultations are going on as to whether we want to regulate it to some extent or really very much or totally ban it.
Source : CryptoTax Legislation Becomes Law
What kind of taxation is this? It doesn't make sense. Ok, getting tax is the most natural right of a state. However, it is necessary to protect the rights of citizens while collecting these taxes. Because nobody collects money from the street and nobody wants to pay such a high tax. Honestly, I don't think anyone would do this legally. Such heavy taxes will only push people to illegal ways. I hope they give up on their mistakes quickly.
This meme is getting circulated around the social media platforms after the heavy taxation from finance minister during the budget session. She has said something really funny, that taxation of cryptocurrency doesn't mean crypto usage is legalized.
it is a very high tax. 30% of the income earned is an extraordinary thing. even though they re-legalized this, they should think about it again, because people are also looking for money in crypto with various risks. well, it's just that, it's a bit of a breath of fresh air for crypto users there. i hope the indian government reduces the taxes given by people who make money from crypto.
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 ?
I am also not at all surprised by this news, because we know all of this has been well designed by the Indian state, at first they proposed to ban bitcoin mining in their country, but after the proposal did not work, now they are planning to increase taxes. 30% to crypto currency, but the government's proposal was not accepted by their own citizens, there are about 23,975 of their citizens who have signed a petition with the aim of asking the government to implement a fair and reasonable tax policy...
If this is true, then the fees is ridiculously too high. What are they trying to achieve with this? Are they trying to discourage cryptocurrency by imposing such fees?
Anyway, I hope this isn't true. If they want such money, then they should invest in cryptocurrency themselves, not try to rip off those doing it.
Anyway, I hope this isn't true. If they want such money, then they should invest in cryptocurrency themselves, not try to rip off those doing it.
The good news is that India supports the growth of cryptocurrencies in their country. Well, that's a huge tax expense, but I'm sure to push bitcoin prices up a bit, maybe this news actually makes altcoins and bitcoin prices continue to rise recently.
Reserve Bank of India has said cryptocurrencies a threat to India's macroeconomic financial stability. In his meet he has mentioned that cryptocurrencies doesn't have any underlying value as they aren't backed by any asset. Not even a tulip.
Through the heavy taxation India has shut the immediate ban on cryptocurrencies. The same stories of money laundering, consumer protection from the investment, usage on illegal activities have been said. He also said it is the investors own risk to invest on cryptocurrencies. Useless people, cryptocurrency or other forms of investments risk is for the investors. His statements is just like another wake up call to the government for a ban.
Source : cryptocurrencies a threat to India's macroeconomic financial stability
Through the heavy taxation India has shut the immediate ban on cryptocurrencies. The same stories of money laundering, consumer protection from the investment, usage on illegal activities have been said. He also said it is the investors own risk to invest on cryptocurrencies. Useless people, cryptocurrency or other forms of investments risk is for the investors. His statements is just like another wake up call to the government for a ban.
Source : cryptocurrencies a threat to India's macroeconomic financial stability
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)
This is crazy, tax is a way to kill Cryptocurrency and to discourage people from investing in Cryptocurrency, if I am living in India I will not trade in a centralized exchange and will opt to Decentralized exchange or do peer to peer, India has a large population of Crypto investors not to mention companies which deal with Cryptocurrency imagine the huge profit and revenues by the India government coming from traders everything is in favor of India's government as if they hate everything about Cryptocurrency.
why 30% isn't that too high, for 1 tax
because in my opinion not all owners/ crypto sellers have big assets like big whales,
the taxation of crypto should be reviewed
because in my opinion not all owners/ crypto sellers have big assets like big whales,
the taxation of crypto should be reviewed
I guess let them stick to bans then. 30% is simply unacceptable, and you will just see that your earnings will go to waste on projects that are not really helping, and your government is plague with corrupt officials that doesn't do anything except rob the public off their money.
Perhaps people from India can lobby for a somewhat acceptable rate. A rate that people can work with and be okay with while still supporting the government's projects.
Perhaps people from India can lobby for a somewhat acceptable rate. A rate that people can work with and be okay with while still supporting the government's projects.
30% tax, ohh my god! If I have to give 30% of my earnings then why do I have to do business with cryptocurrency? Private jobs are far better than that.
Can anyone please tell me that, will that government also take the responsibility of 30% loss if anyone loses his funds for the volatility reason??
If they deny taking the responsibility of losing money when the market is dumped then why do they want to charge such a high fee, I can't understand.
30% tax is totally insane decision, in my opinion, Indian people should have to strike against such a decision.
Can anyone please tell me that, will that government also take the responsibility of 30% loss if anyone loses his funds for the volatility reason??
If they deny taking the responsibility of losing money when the market is dumped then why do they want to charge such a high fee, I can't understand.
30% tax is totally insane decision, in my opinion, Indian people should have to strike against such a decision.
30% seems like so much!
is that just on profit or everything like if I but 1k of crypto make 1.1k off it will i get taxed on 100$ or 1.1k?
is that just on profit or everything like if I but 1k of crypto make 1.1k off it will i get taxed on 100$ or 1.1k?
The Indian government announced Tuesday that it would begin taxing income from digital assets. This is a positive step for crypto adoption, but a 30% tax rate is wrong. It will either drive big investors to the stock market or force them to leave the country. Small investors may or may not invest. 30% is huge, even government employment doesn't pay that much. Until it becomes a law, it is still a proposal. We have until the 1st of April 2022 to accomplish this.
According to my calculations, 30% of 1,000USD equals $300. That should definitely be the profit portion, right?
According to my calculations, 30% of 1,000USD equals $300. That should definitely be the profit portion, right?
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.
That's not a small amount of taxes, but at least it's a better solution than a ban on cryptocurrencies, which India was considering at one point not long ago. Compared to other countries, the taxes are still moderate. In Germany, for example, one pays up to 45% for income (independent from regular income or crypto income).
What? 
This is the most absurd regulation proposal made by a government towards cryptocurrency so far. It's even more absurd than completely banning it as it was presupposed before. I guess in a situation where the investor loses money with crypto and NFT the government is also going to pick the loss in solidarity, compensating 30% of the lost amount back to the investor, right?
Such lunatic concept would only make sense this way...
This is the most absurd regulation proposal made by a government towards cryptocurrency so far. It's even more absurd than completely banning it as it was presupposed before. I guess in a situation where the investor loses money with crypto and NFT the government is also going to pick the loss in solidarity, compensating 30% of the lost amount back to the investor, right?
Such lunatic concept would only make sense this way...
Highlights on Virtual Digital Assets Taxation
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. - 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
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
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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.
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.
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.
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 ?
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.
Highlights on Virtual Digital Assets Taxation
Source : India proposes 30% tax on crypto and NFTs income
- 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!
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.
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.
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.
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.
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.
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.
- 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.
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.
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.
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.
Highlights on Virtual Digital Assets Taxation
Source : India proposes 30% tax on crypto and NFTs income
- 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.
Does anyone know how much more is 30% compared to other comparable income taxes in India?
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.
Highlights on Virtual Digital Assets Taxation
Source : India proposes 30% tax on crypto and NFTs income
- 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.
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.
Highlights on Virtual Digital Assets Taxation
Source : India proposes 30% tax on crypto and NFTs income
- 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
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