India's 30% tax on income from digital asset - page 2.

molsewid

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Quote from: Taskford on February 13, 2022, 07:12:16 AM

This is really ridiculous but atleast they see it been regulated and maybe there will be changes will come in future towards it, Maybe for now they should fight and propose to the government to lower down the tax rate so that they can use it without any worries that there is a huge burden to them by using this currency. Anyways we don't know what will happen but maybe we can see some consideration on this issues.

A 30% income tax in digital asset is ridiculously high I guess but yeah atleast the government allowed their people to use the digital assets. Though India's government did not want to specify the word cryptocurrency instead they used digital assets it's already good to know that they can now used their digital assets legally. I just do hope that someday digital assets will be also legally adopted here in my country so I can used it legally to purchase goods and services.

Taskford

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Quote from: LastKiss on February 13, 2022, 05:46:43 AM

Quote from: Anonylz on February 13, 2022, 02:11:31 AM

This is too high, damn! They are really trying so hard to discourage people from getting involved in owning crypto assets with such ridiculous high-income tax, I guess it is up to the citizens to decide if they are willing to accept regardless of the high tax imposed by the government, whether big or small investors will feel the same impact of 30%, and the moment people are okay with this I don't see it changing, 10 - 15% would have been reasonable.

Well, if Indian People don't like it they wont pay 30% income tax because they will see that regulation is ridiculous. We should be grateful if we lived in a country that still didn't take any tax from crypto income and instead they make it legal for transactions and commodities. I bet many people are okay with that regulation because they didnt pay that tax

This is really ridiculous but atleast they see it been regulated and maybe there will be changes will come in future towards it, Maybe for now they should fight and propose to the government to lower down the tax rate so that they can use it without any worries that there is a huge burden to them by using this currency. Anyways we don't know what will happen but maybe we can see some consideration on this issues.

cheezcarls

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Even though that this is totally painful in the pockets of Indian crypto investors, traders and enthusiasts, it’s still much better than an outright ban like what China and other anti-crypto countries did. Russia also took a positive stance by regulating it and recognize them as “currencies” instead of banning it in the entire country which was proposed by the Central Bank back then.

And also back then, the India government has proposed a ban for their citizens to hold and trade cryptocurrencies. It even includes imprisonment if someone gets caught for holding Bitcoin and other cryptocurrencies.

At this state, the “change of heart” was real and India and Russia are setting a great example.

LastKiss

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Quote from: Anonylz on February 13, 2022, 02:11:31 AM

This is too high, damn! They are really trying so hard to discourage people from getting involved in owning crypto assets with such ridiculous high-income tax, I guess it is up to the citizens to decide if they are willing to accept regardless of the high tax imposed by the government, whether big or small investors will feel the same impact of 30%, and the moment people are okay with this I don't see it changing, 10 - 15% would have been reasonable.

Well, if Indian People don't like it they wont pay 30% income tax because they will see that regulation is ridiculous. We should be grateful if we lived in a country that still didn't take any tax from crypto income and instead they make it legal for transactions and commodities. I bet many people are okay with that regulation because they didnt pay that tax

Anonylz

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This is too high, damn! They are really trying so hard to discourage people from getting involved in owning crypto assets with such ridiculous high-income tax, I guess it is up to the citizens to decide if they are willing to accept regardless of the high tax imposed by the government, whether big or small investors will feel the same impact of 30%, and the moment people are okay with this I don't see it changing, 10 - 15% would have been reasonable.

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Quote from: Eltharion on February 12, 2022, 04:54:20 PM

what is the average tax rate on income in India? - that would help in evaluating if 30% on crypto currency is much or not.

The top most bracket is 43% on regular income. That said, it should be noted that less than 2% of the Indian population pays any form of income tax. There are a lot of loopholes. Farmers are exempted from income tax, no matter how large is their income. The same goes for residents of certain states such as Mizoram. However gains from capital assets are being taxed at a concessional rate. For example stocks, if held for more than 12 months are taxed at a rate of 10% (and 15% in case they are being held for less than that duration).

Eltharion

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what is the average tax rate on income in India? - that would help in evaluating if 30% on crypto currency is much or not.

Sithara007

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Quote from: arwin100 on February 11, 2022, 07:12:42 AM

Some other people think about its there way to eliminate bitcoin on their country since using it will be more expensive to them but lets also not eliminate the bright since maybe this is their way to study how bitcoin could help their economy and if they find it useful then many people will protest to lower its tax then maybe it can get a chance to have less tax percentage to be taken on their citizens.

If the intent is to eliminate Bitcoin usage, then it is never going to work. For the government, one of the issues with Bitcoin taxation is similar to what they have with other capital assets. These assets can't be taxed unless they are sold. So if some user purchases Bitcoin and keeps them in his wallet for 15 or 20 years, there is no way that the government can ask him to pay taxes. Senator Ron Wyden in United States has proposed a bill that would tax unrealized capital gains for the first time in history, but such moves are not expected from the Indian government.

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Quote from: arwin100 on February 11, 2022, 07:12:42 AM

Quote from: Sithara007 on February 10, 2022, 08:24:57 PM

Quote from: Hypnosis00 on February 10, 2022, 08:53:24 AM

not for sure but the government in India and even in the other countries that adopt crypto will certainly consider it as a helping tool to make money and grow their economy. And the way asking for taxes in every holders is a wise move. However, that it makes sad is that 30% is quite big enough especially for small investors and those who are just about to start. I think, 20% is favorable and acceptable to the majority.

And I think the government must have to look also the current situation where many are still struggling hard to recover and make a good living. This is not the perfect time to push it but rather to spare some time when we totoally get back to normal.

Juts noticed that tax on profits from investment in gold is 20% (applicable for long term investments, with more than 3 years period). So in a way, the 30% tax on crypto is excessive and hopefully Nirmala might reduce it in the next budget. But short term capital gains tax on gold can go up to 43%, depending on the income tax slab. So in a way, the taxes on crypto is lower compared to that on gold in certain instances. The issue here is that long term gains are taxed at a rate that is equal to short term gains.

Some other people think about its there way to eliminate bitcoin on their country since using it will be more expensive to them but lets also not eliminate the bright since maybe this is their way to study how bitcoin could help their economy and if they find it useful then many people will protest to lower its tax then maybe it can get a chance to have less tax percentage to be taken on their citizens.

Neither they are testing it out whether they are minding about their economy or would really be just that normal that they would go against decentralization but if they do then they have banned it on the

first place but they did not but rather imposing 30% tax which is indeed really high and for those people who do reside on this country then it would really be a bad news.

Somehow but they could really find out ways or methods on dealing with that problem but that wont be easy.

doomloop

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Quote from: Hypnosis00 on February 10, 2022, 08:53:24 AM

not for sure but the government in India and even in the other countries that adopt crypto will certainly consider it as a helping tool to make money and grow their economy. And the way asking for taxes in every holders is a wise move. However, that it makes sad is that 30% is quite big enough especially for small investors and those who are just about to start. I think, 20% is favorable and acceptable to the majority.

Nobody is saying that paying tax is bad, of course we are all meant to pay tax from our income because that is what helps the government to make money and also grow economy and make the country a better place. But aside from that, I think the government should also learn to be making rules that will also favour the people and not be kind of oppressing.

And the other thing is that I think this kind of tax should have level, everyone really shouldn’t be paying that same amount, because not everybody earns that much from Bitcoin. And there are people that doesn’t even have much to invest at all. So they really should look into it.

Silberman

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Quote from: Xinarae* on February 08, 2022, 11:48:12 PM

With regard to taxes as a whole it is a matter of great relief that our government is taking a progressive stance towards innovation. By introducing taxes the government gives a lot of legitimacy to the industry most people, especially in the corporate sector who are sitting on the sidelines due to uncertainty, will now be able to invest in crypto. Overall this is a positive step for the industry india is also moving towards finally bringing the unregulated and uninterrupted cryptocurrency sector under a regulatory framework the country's finance minister nirmala sitharaman has also suggested a 1% tax cut at source on payments related to the purchase of virtual assets.

Without a doubt this is better than a ban but the tax is still too high, if anything it looks punitive to me, as if the government is trying to stop people from using cryptocurrencies by purposely charging a huge tax to it, I think that eventually they will lower the tax if they are smart and recognize that this industry is unstoppable and that they better get something out of it, something that I do not think will be possible with a 30% tax as people will simply hold their coins and avoid producing any taxable event.

goldkingcoiner

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Crypto-backward countries like India have absolutely no plan what they are doing and seem to be flip-flopping on the entire regulatory issue. There is absolutely no need for unfair tax on crypto incomes. It seems like this kind of regulation serves to coerce crypto people into going against the whole principle idea of why crypto exists in the first place.... This will definitely backfire on India in the long term.

At some point, everyone will understand that crypto is out of governments control and the control is only in their own minds of the people. Once that happens, we will be free.

arwin100

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Quote from: Sithara007 on February 10, 2022, 08:24:57 PM

Quote from: Hypnosis00 on February 10, 2022, 08:53:24 AM

not for sure but the government in India and even in the other countries that adopt crypto will certainly consider it as a helping tool to make money and grow their economy. And the way asking for taxes in every holders is a wise move. However, that it makes sad is that 30% is quite big enough especially for small investors and those who are just about to start. I think, 20% is favorable and acceptable to the majority.

And I think the government must have to look also the current situation where many are still struggling hard to recover and make a good living. This is not the perfect time to push it but rather to spare some time when we totoally get back to normal.

Juts noticed that tax on profits from investment in gold is 20% (applicable for long term investments, with more than 3 years period). So in a way, the 30% tax on crypto is excessive and hopefully Nirmala might reduce it in the next budget. But short term capital gains tax on gold can go up to 43%, depending on the income tax slab. So in a way, the taxes on crypto is lower compared to that on gold in certain instances. The issue here is that long term gains are taxed at a rate that is equal to short term gains.

Some other people think about its there way to eliminate bitcoin on their country since using it will be more expensive to them but lets also not eliminate the bright since maybe this is their way to study how bitcoin could help their economy and if they find it useful then many people will protest to lower its tax then maybe it can get a chance to have less tax percentage to be taken on their citizens.

beerlover

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I think such a law was set by those who don’t like cryptocurrency. And it’s quite possible that they have done this as a way to discourage people from investing in cryptocurrency. But their plans are not really going to work because this would only make a lot of people to leave centralized exchanges and start moving to decentralized ones.

The tax amount is quite big and shouldn’t be what people are expected to pay for investing in cryptocurrency. It’s quite clear that anyone who have set such a law is someone who doesn’t like crypto currency, because I don’t see why anyone would be expected to pay as much as 30% tax For profits that are made through cryptocurrency.

Sithara007

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Quote from: Hypnosis00 on February 10, 2022, 08:53:24 AM

not for sure but the government in India and even in the other countries that adopt crypto will certainly consider it as a helping tool to make money and grow their economy. And the way asking for taxes in every holders is a wise move. However, that it makes sad is that 30% is quite big enough especially for small investors and those who are just about to start. I think, 20% is favorable and acceptable to the majority.

And I think the government must have to look also the current situation where many are still struggling hard to recover and make a good living. This is not the perfect time to push it but rather to spare some time when we totoally get back to normal.

Juts noticed that tax on profits from investment in gold is 20% (applicable for long term investments, with more than 3 years period). So in a way, the 30% tax on crypto is excessive and hopefully Nirmala might reduce it in the next budget. But short term capital gains tax on gold can go up to 43%, depending on the income tax slab. So in a way, the taxes on crypto is lower compared to that on gold in certain instances. The issue here is that long term gains are taxed at a rate that is equal to short term gains.

Hypnosis00

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Quote from: Dunamisx on February 10, 2022, 03:44:12 AM

The Reserve Bank of India, Finance Minister and the CBDC were working together towards maintaining the bitcoin regulation and the effect of tax payment by all involved in cryptocurrency activities, with the 30% tax payment, this will help the government boost its impact on the economy as both synergies to gain a mutual benefit as all crypto activities were progressively in operations and the 30% could constitute the government internal generated revenue (IGR] thereby increasing the role and impacts of the government on the economy

not for sure but the government in India and even in the other countries that adopt crypto will certainly consider it as a helping tool to make money and grow their economy. And the way asking for taxes in every holders is a wise move. However, that it makes sad is that 30% is quite big enough especially for small investors and those who are just about to start. I think, 20% is favorable and acceptable to the majority.

And I think the government must have to look also the current situation where many are still struggling hard to recover and make a good living. This is not the perfect time to push it but rather to spare some time when we totoally get back to normal.

Dunamisx

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The Reserve Bank of India, Finance Minister and the CBDC were working together towards maintaining the bitcoin regulation and the effect of tax payment by all involved in cryptocurrency activities, with the 30% tax payment, this will help the government boost its impact on the economy as both synergies to gain a mutual benefit as all crypto activities were progressively in operations and the 30% could constitute the government internal generated revenue (IGR] thereby increasing the role and impacts of the government on the economy

Sithara007

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Quote from: mobilestrike on February 09, 2022, 03:04:41 PM

Really this then create problem for the day traders as with each trade they will see 1% deducted from their amount. But there is one solution for that, if they will trade on centralized exchange then I do not think that 1% will be deducted from each trade as on centralized exchanges all the deposits are on one place on the exchange address and we trade with the numbers and is transferred to another address only when we withdraw, if I right!!

I am not sure whether this loophole is available. As per the budget speech, all the transactions will come under a TDS of flat 1%. If a day trader is doing intraday trading, then irrespective of whether the coins are actually moved or not, in my understanding it will attract a tax of 1%. Others please correct me in case I am wrong. And each and every transaction needs to be shown in the income tax return. So even if the centralized exchange is used and the coins or tokens are not actually moved, I guess they come under the tax liability.

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This country is still confused about crypto currency. Didn't they try to ban crypto currency again and again? And now they impose a very strict and insane framework that will only cause people to not use or stay away from crypto currencies. The tax rate was set to reap as much as the can from their people. And since income tax from crypto is also the same, people wouldn't want to accept crypto currencies as a form of payment. How are they going to be taxed if they want to use it as currency? Every time they transact, they will be incurring tax?

Mahanton

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Quote from: mobilestrike on February 09, 2022, 04:12:55 PM

Quote from: dunfida on February 09, 2022, 03:28:28 PM

Quote from: mobilestrike on February 09, 2022, 03:04:41 PM

Quote from: Sithara007 on February 08, 2022, 09:58:23 PM

Quote from: mobilestrike on February 08, 2022, 04:57:58 PM

Yeah that is the logical point which that bureaucrat did not noticed or thought about which made his proposal a failed proposal. The finance minister gave an idea to the state which I myself like in the time when there was a fear of ban of the crypto in the country. Without that greed of the 30% tax given to the state she may not be able to approve her idea. She gave the idea of mutual benefits to the state among the users and the state.

IMO, the 30% tax is less problematic when compared to the 1% VAT that is imposed on all cryptocurrency taxations. And that too in TDS mode. It means that if I want to transfer crypto from one of my wallets to another, then a 1% tax (on the transaction amount) needs to be paid and the details need to be shown in the tax return. For day traders, this is unviable. If they pay 1% as tax, then there is no way that they will end up with a profit. And this also means that crypto can't be used as a medium of payment, as it will be more expensive when compared to credit card or online bank transfer.

Really this then create problem for the day traders as with each trade they will see 1% deducted from their amount. But there is one solution for that, if they will trade on centralized exchange then I do not think that 1% will be deducted from each trade as on centralized exchanges all the deposits are on one place on the exchange address and we trade with the numbers and is transferred to another address only when we withdraw, if I right!!

When a certain country does impose that kind of regulation then it is likely that any centralized platforms could be possibly be asked with some sort of account history or what but this would be only be possible if you do

get caught on evading tax and really been involved with some in depth investigation which it couldnt really be that avoided that they would be providing all the details but speaking off making withdrawal on other

addresses then its true that you can get hold off those funds but for sure you would really be monitored out and it would really be mandatory that you should pay up tax.

If that state have imposed that kind of rule then they have prepared everything for imposing that rule as I am hearing that government is working from a few years to dal with this field. Sometimes they imposed ban and sometimes they remove that ban. There was also a case in the court about that matter and after that longer time they came up with this decision means that they must have prepared the subject well.

By the way if they do not keep deep eye on every movement of their citizens then they can only monitor those who are depositing, withdrawing with their bank account and those who are using centralized exchanges etc.

And this is where AMLA do sets in but the scope of their responsibility couldnt really break through on other mediums which they would really be focusing more on centralized platforms on which they could possibly
monitored out.

Quote from: Mometaskers on February 09, 2022, 03:56:06 PM

30% is pretty greedy. Together with whatever fees that have to be paid when transferring between these platforms, it could really eat into whatever small profit traders might be earning.

Big profits or small ones it wouldnt matter yet that would surely be a significant cut on your total profits which doesnt really look appealing at all.

Topic: India's 30% tax on income from digital asset - page 2. (Read 682 times)