India taxes Cryptocurrencies at 30%, what's next? - page 2.

eaLiTy

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Quote from: crashedanon on February 02, 2022, 01:25:05 AM

There are several cons as 30% is a big share.

Is there any possible way to legally avoid the taxations?

There is no way you are going to avoid the taxes living in India and using the exchanges situated in India. The possible way is that you can move out of the country to free heaven like UAE or other similar countries if you are dealing in huge number of coins and become an NRI and you will get an tax exemption . Cheesy

It only makes sense if you are holding substantial amount of dollars worth of cryptocurrency. Wink

MCVXYZ

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Quote from: jrrsparkles on February 03, 2022, 02:57:53 PM

Quote from: MCVXYZ on February 03, 2022, 01:15:53 PM

Quote from: jrrsparkles on February 03, 2022, 12:26:23 PM

Quote from: crashedanon on February 02, 2022, 01:25:05 AM

Yesterday i.e. 1st February 2022 India announced its budget, and in the session, it stated that crypto transactions will be taxed at the rate of 30%. There is very less to be sure of what is the impact of the following decision[ +ve or -ve]

I see that taxing cryptos has one good pro here i.e. it can be said that cryptocurrency is legal in India or maybe?

There are several cons as 30% is a big share.

Is there any possible way to legally avoid the taxations?

Taxes for transactions? Or for the gains?

No government can simply ask taxes for the transactions they can only demand taxes for the income we made from it for example it can be capital gains ir profits from doing cryptocurrency trading.

Also I saw that they are going to be introducing their CBDC means they won't allow decentralized cryptocurrencies to grow in their market anymore.

I think Its for gains and they may pay the tax for the difference between the purchase and sales price, otherwise it wouldn't have any explanation. In many countries it is considered as a capital asset and taxed as property. So if non cryptographic currency is taxed for example 18%, who will pay 30%?

But OP mentioned its the tax rates for transactions, anyway we may get clear idea from the officials and I don't even see any cryptocurrency news blog sites mentioned about this? Surprising though because many reputed news sites claimed that India banned bitcoin completely when their Central Bank issued restrictions not the government but now no news about it.

Here is the news from Forbes: ,,India's government on Tuesday announced plans to impose a 30% tax on income gained from digital assets like cryptocurrencies and non-fungible tokens (NFTs), in a move that will assuage earlier concerns about the country imposing an outright ban on cryptocurrencies.''

JohnBitCo

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Quote from: jrrsparkles on February 03, 2022, 02:57:53 PM

Quote from: MCVXYZ on February 03, 2022, 01:15:53 PM

Quote from: jrrsparkles on February 03, 2022, 12:26:23 PM

Quote from: crashedanon on February 02, 2022, 01:25:05 AM

Yesterday i.e. 1st February 2022 India announced its budget, and in the session, it stated that crypto transactions will be taxed at the rate of 30%. There is very less to be sure of what is the impact of the following decision[ +ve or -ve]

I see that taxing cryptos has one good pro here i.e. it can be said that cryptocurrency is legal in India or maybe?

There are several cons as 30% is a big share.

Is there any possible way to legally avoid the taxations?

Taxes for transactions? Or for the gains?

No government can simply ask taxes for the transactions they can only demand taxes for the income we made from it for example it can be capital gains ir profits from doing cryptocurrency trading.

Also I saw that they are going to be introducing their CBDC means they won't allow decentralized cryptocurrencies to grow in their market anymore.

I think Its for gains and they may pay the tax for the difference between the purchase and sales price, otherwise it wouldn't have any explanation. In many countries it is considered as a capital asset and taxed as property. So if non cryptographic currency is taxed for example 18%, who will pay 30%?

But OP mentioned its the tax rates for transactions, anyway we may get clear idea from the officials and I don't even see any cryptocurrency news blog sites mentioned about this? Surprising though because many reputed news sites claimed that India banned bitcoin completely when their Central Bank issued restrictions not the government but now no news about it.

Both of the news, the banning of bitcoin in India and this 30% tax on bitcoin are not the final verdict from the official sources. This is just being proposed and it will become the law once there is an official print and version released.
Since there are too many voices against this high tax, it is possible that government may lower the tax rates and/or make it more clear in the actual law.

jrrsparkles

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Quote from: MCVXYZ on February 03, 2022, 01:15:53 PM

Quote from: jrrsparkles on February 03, 2022, 12:26:23 PM

Quote from: crashedanon on February 02, 2022, 01:25:05 AM

Yesterday i.e. 1st February 2022 India announced its budget, and in the session, it stated that crypto transactions will be taxed at the rate of 30%. There is very less to be sure of what is the impact of the following decision[ +ve or -ve]

I see that taxing cryptos has one good pro here i.e. it can be said that cryptocurrency is legal in India or maybe?

There are several cons as 30% is a big share.

Is there any possible way to legally avoid the taxations?

Taxes for transactions? Or for the gains?

No government can simply ask taxes for the transactions they can only demand taxes for the income we made from it for example it can be capital gains ir profits from doing cryptocurrency trading.

Also I saw that they are going to be introducing their CBDC means they won't allow decentralized cryptocurrencies to grow in their market anymore.

I think Its for gains and they may pay the tax for the difference between the purchase and sales price, otherwise it wouldn't have any explanation. In many countries it is considered as a capital asset and taxed as property. So if non cryptographic currency is taxed for example 18%, who will pay 30%?

But OP mentioned its the tax rates for transactions, anyway we may get clear idea from the officials and I don't even see any cryptocurrency news blog sites mentioned about this? Surprising though because many reputed news sites claimed that India banned bitcoin completely when their Central Bank issued restrictions not the government but now no news about it.

avikz

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Quote from: crashedanon on February 02, 2022, 01:25:05 AM

Yesterday i.e. 1st February 2022 India announced its budget, and in the session, it stated that crypto transactions will be taxed at the rate of 30%. There is very less to be sure of what is the impact of the following decision[ +ve or -ve]

Please re-read the announcement. Crypto transactions are not going to taxed at 30%. It is the crypto gains that are going to taxed at 30%. Crypto transactions through centralized exchanges will attract 1% TDS.

Quote

I see that taxing cryptos has one good pro here i.e. it can be said that cryptocurrency is legal in India or maybe?

There are several cons as 30% is a big share.

Is there any possible way to legally avoid the taxations?

30% is obviously a big amount. But considering the fact that Indian government was thinking of banning cryptocurrency, I would say that tax is a net positive. You can now consider cryptocurrency as a legal asset in India.

MCVXYZ

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Quote from: jrrsparkles on February 03, 2022, 12:26:23 PM

Quote from: crashedanon on February 02, 2022, 01:25:05 AM

Yesterday i.e. 1st February 2022 India announced its budget, and in the session, it stated that crypto transactions will be taxed at the rate of 30%. There is very less to be sure of what is the impact of the following decision[ +ve or -ve]

I see that taxing cryptos has one good pro here i.e. it can be said that cryptocurrency is legal in India or maybe?

There are several cons as 30% is a big share.

Is there any possible way to legally avoid the taxations?

Taxes for transactions? Or for the gains?

No government can simply ask taxes for the transactions they can only demand taxes for the income we made from it for example it can be capital gains ir profits from doing cryptocurrency trading.

Also I saw that they are going to be introducing their CBDC means they won't allow decentralized cryptocurrencies to grow in their market anymore.

I think Its for gains and they may pay the tax for the difference between the purchase and sales price, otherwise it wouldn't have any explanation. In many countries it is considered as a capital asset and taxed as property. So if non cryptographic currency is taxed for example 18%, who will pay 30%?

jrrsparkles

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Quote from: crashedanon on February 02, 2022, 01:25:05 AM

Yesterday i.e. 1st February 2022 India announced its budget, and in the session, it stated that crypto transactions will be taxed at the rate of 30%. There is very less to be sure of what is the impact of the following decision[ +ve or -ve]

I see that taxing cryptos has one good pro here i.e. it can be said that cryptocurrency is legal in India or maybe?

There are several cons as 30% is a big share.

Is there any possible way to legally avoid the taxations?

Taxes for transactions? Or for the gains?

No government can simply ask taxes for the transactions they can only demand taxes for the income we made from it for example it can be capital gains ir profits from doing cryptocurrency trading.

Also I saw that they are going to be introducing their CBDC means they won't allow decentralized cryptocurrencies to grow in their market anymore.

bittraffic

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It might have been high but I think India is in the right direction in regulating crypto and taxing it than banning completely.like China did. Mody must have cleared his mind already after all the deliberation he finally come up with good news.

Make sense to because they won't be able to tax it if they illegalize crypto.

LeGaulois

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If you complain about a 30% tax, come to Europe you will see it's a normal percentage here, and for a lot of gains types. People don't want to pay taxes but like to complain because they have shit roads, old hospitals, live in slums, and don't have free schools. Just a reminder, it's 30% on the gains and not 30% on the total value of the portfolio.

Countries usually deny or make bitcoin illegal but when they realize it's not possible to do it efficiently they start to accept it and tax it. After all, it's free money, they won't refuse it... What hypocrisy is it?
At least, we won't read anymore about India and Bitcoin. No more possible bans, and others stuff.

As for the person saying you shouldn't convert your BTC to INR to avoid taxation. Keep in mind that if you were suggesting to spend his BTC, it doesn't make you non-eligible to pay the taxes. Let's say you buy an item and pay it with bitcoin, you're supposed to consider the price of the item and the BTC you spent.

It's like if you exchange your house for a car instead of fiat. You still have to pay the taxes, otherwise, it would be too easy.

MCVXYZ

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Quote from: crashedanon on February 02, 2022, 01:25:05 AM

Yesterday i.e. 1st February 2022 India announced its budget, and in the session, it stated that crypto transactions will be taxed at the rate of 30%. There is very less to be sure of what is the impact of the following decision[ +ve or -ve]

I see that taxing cryptos has one good pro here i.e. it can be said that cryptocurrency is legal in India or maybe?

There are several cons as 30% is a big share.

Is there any possible way to legally avoid the taxations?

30% is such a huge amount that you won't send any Satoshis. What about the avoiding taxations, I don't think that it worth to break the law for this. you may try to understand how will this mechanism work and find other legal ways and white holes to reduce the cost of using cryptocrurrencies.

teosanru

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Quote from: crashedanon on February 02, 2022, 01:25:05 AM

Yesterday i.e. 1st February 2022 India announced its budget, and in the session, it stated that crypto transactions will be taxed at the rate of 30%. There is very less to be sure of what is the impact of the following decision[ +ve or -ve]

I see that taxing cryptos has one good pro here i.e. it can be said that cryptocurrency is legal in India or maybe?

There are several cons as 30% is a big share.

Is there any possible way to legally avoid the taxations?

One possible way is to never convert your holdings into INR. The government has taxed cryptocurrency profits and profits can only be calculated if you sell your digital assets for INR. So one possible way is to just sell your crypto holdings into Stablecoins. But eventually, whenever you make a withdrawal from your account to use it you will have to pay taxes at flat 30%. Now the problem here is that even gifts have been taxed in the hands of the recipients, which means even the P2P mechanism for selling won't work. Also even TDS is proposed which means exchanges will deduct TDS when giving withdrawals to users which means evasion is not at all possible.

noorman0

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Quote from: crashedanon on February 02, 2022, 01:25:05 AM

Is there any possible way to legally avoid the taxations?

Is tax evasion basically legal? You will still have to pay your taxes.

Afaik, some countries (like mine) are tax-exempt if you receive income from abroad on the condition that you have to pay taxes in the country where you received the income and request that the tax returns be reported back to your regional tax authority. If India had such a policy, it would probably be the only "expensive tax avoidance" legally. Grin

crashedanon

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Quote from: smartaction on February 02, 2022, 05:52:41 AM

How will the government control it where it is a decentralized currency. You can use that wallets to store your currency. that wallets are not regulated by the india government. Then there is no way they will be able to track you and find out how much asset you have in cryptocurrency then you can avoid that taxations

Is there a way where I can buy and sell crypto currencies using a smart contract from different exchanges?

smartaction

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It is very annoying that the india government has demanded 30% tax for crypto. This is an a huge amount of tax that no one would ever want to pay.

Quote from: crashedanon on February 02, 2022, 01:25:05 AM

Is there any possible way to legally avoid the taxations?

How will the government control it where it is a decentralized currency. You can use that wallets to store your currency. that wallets are not regulated by the india government. Then there is no way they will be able to track you and find out how much asset you have in cryptocurrency then you can avoid that taxations

crashedanon

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Yesterday i.e. 1st February 2022 India announced its budget, and in the session, it stated that crypto transactions will be taxed at the rate of 30%. There is very less to be sure of what is the impact of the following decision[ +ve or -ve]

I see that taxing cryptos has one good pro here i.e. it can be said that cryptocurrency is legal in India or maybe?

There are several cons as 30% is a big share.

Is there any possible way to legally avoid the taxations?

Topic: India taxes Cryptocurrencies at 30%, what's next? - page 2. (Read 645 times)