India's 30% tax on income from digital asset - page 5.

laredo7mm

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Quote from: Bttzed03 on February 01, 2022, 11:45:34 PM

If you're wondering why they used 'Digital Assets' instead of 'Currency', they do not recognized crypto as a currency. The PM said it only becomes a currency when it is issued by the Central Bank (CBDC) and anything outside it is an Asset.

What are your thoughts on this?

They used "Digital Assets" because they are mentioning NFT too along with cryptocurrencies. They haven't passed any law about cryptocurrencies but implemented a tax on them. This is clear that they are discouraging their people to invest in crypto assets. They implemented a tax for legalizing your crypto transaction but it's still unregulated in India. They were close to banning cryptocurrencies in India but haven't done it by seeing a lot of money invested there.

I think they are just trying to say "Do not invest in cryptocurrencies" indirectly.

Silberman

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Quote from: kryptqnick on February 04, 2022, 09:29:11 AM

It's just a proposal, so maybe it won't be like this, but India hasn't been crypto-friendly for a while. A 30% tax is very high, and if it also applies to selling and transferring, it basically makes everyday use of Bitcoin impossible. Taxes should be reasonable and progressive, starting at a very low rate. And transfers shouldn't be taxed at all, and neither should small capital gains be taxed. I hope they'll come up with something better, though. Something that motivates people to pay taxes and use cryptos. Because bad regulations tend to motivate people to stay in the shadows, simply, so the state doesn't get much in taxes.

Obviously we hope this is the case for all bitcoin users that are located at India, but I do not think this will be the case, politicians think of the country as belonging to them and not to the people, so they think that whatever laws that they pass are going to be followed by the people no matter what, however when a law is unfair people have the option to use civil disobedience and ignore the law, and bitcoin thanks to its decentralized nature could allow this to the people living at India.

Findingnemo

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Unfair taxes will actually forces the people to evade it or they will find alternatives to hide the source so p2p transactions will again preferred by traders so they can report the source as others and pay less taxes and its a big blow for the exchange users because they can't avoid reporting since KYC is mandatory in all the exchanges operating there.

Questat

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Quote from: coolcoinz on February 04, 2022, 09:49:45 AM

They had a lot of people protesting against bans and they know a ban looks bad and puts them on a map along with some authoritarian regimes like China, so the best course of action was to avoid it. At the same time they want to discourage people from using cryptocurrencies so 30% tax is going to work good. From my libertarian point of view, this tax is abusive, but fortunately I don't live in India. We all have a choice. If the government is abusive, move somewhere else.

those who understand the benefits that we get from Bitcoin will certainly ask to unbanned and as support for this. But those who are ignorant and pretending a victim of a huge crypto scam will surely be happy and even encourage the government leaders to stop and put an end.
I'd never find another reason why India's leaders are proposing 30% tax to all crypto holders as it possibly they wanted to discourage people to use and invest this. That actually isn't fair but has nothing to do when officially sealed as legal.

coolcoinz

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They had a lot of people protesting against bans and they know a ban looks bad and puts them on a map along with some authoritarian regimes like China, so the best course of action was to avoid it. At the same time they want to discourage people from using cryptocurrencies so 30% tax is going to work good. From my libertarian point of view, this tax is abusive, but fortunately I don't live in India. We all have a choice. If the government is abusive, move somewhere else.

kryptqnick

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It's just a proposal, so maybe it won't be like this, but India hasn't been crypto-friendly for a while. A 30% tax is very high, and if it also applies to selling and transferring, it basically makes everyday use of Bitcoin impossible. Taxes should be reasonable and progressive, starting at a very low rate. And transfers shouldn't be taxed at all, and neither should small capital gains be taxed. I hope they'll come up with something better, though. Something that motivates people to pay taxes and use cryptos. Because bad regulations tend to motivate people to stay in the shadows, simply, so the state doesn't get much in taxes.

ultrloa

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Quote from: Bttzed03 on February 04, 2022, 06:35:43 AM

Quote from: takngantuk on February 02, 2022, 07:34:00 AM

~ If this policy is legalized, I think there will be a lot of people against it. because the percent of the tax is too high, and does not make sense if applied. they should come up with a new better proposal and change the 30% to a reasonable numbers.

People's reaction are mixed on this proposed tax digital asset income. Some are understandably angry while others are okay with it because it's still better than a ban. Those who agree said it's just the first step though which probably means they are waiting for the actual law and also plan to make proposals to reduce in the future. If passed, I think it will take a few years before amendments will be made.

Yes because some think that its good recognition by the government since by putting tax on bitcoin it show that it has a chance to became legal on their country. But also at negative side its like discouraging their citizens to use since there's a huge tax will taken to them if they keep using this. Maybe the indian government grant this since they see a vast majority disagree on what action they do towards bitcoin and they just put that huge tax to eliminate it slowly.

gantez

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Quote from: tyz on February 04, 2022, 07:01:12 AM

Whether the 30% tax is justified or not is subjective. I for example would be very happy with this tax rate on crypto income, because in my country I pay 40+ percent tax on crypto income Wink

It is too high to tax an income that way and 40% is out of it. This means every income will go into tax and India is having a high cost of living there, the situation will not be a good one in that aspect. When income goes into tax it only increase the level of hardship in the people because the standard of living will also go higher.

tyz

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Have already replied to a similar discussion on Reddit. Basically, this proposal is much better than a ban, which was on the table not too long ago. Therefore, the move away from a ban and the attempt to treat cryptocurrencies in terms of tax law is a big step forward. Whether the 30% tax is justified or not is subjective. I for example would be very happy with this tax rate on crypto income, because in my country I pay 40+ percent tax on crypto income Wink

Bttzed03

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Quote from: takngantuk on February 02, 2022, 07:34:00 AM

~ If this policy is legalized, I think there will be a lot of people against it. because the percent of the tax is too high, and does not make sense if applied. they should come up with a new better proposal and change the 30% to a reasonable numbers.

People's reaction are mixed on this proposed tax digital asset income. Some are understandably angry while others are okay with it because it's still better than a ban. Those who agree said it's just the first step though which probably means they are waiting for the actual law and also plan to make proposals to reduce in the future. If passed, I think it will take a few years before amendments will be made.

Ozero

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It’s good that India still intends to legalize the circulation of cryptocurrency. But we should wait for the relevant law, because there have been various opinions about the fate of the cryptocurrency for a very long time and there was a lot of information about its possible ban in this country.
Of course, a 30 percent tax on profits from cryptocurrency activities is very large. Most likely, the Indian authorities want to reduce the desire and ability of citizens to engage in cryptocurrency in this way. But this may be a further field for struggle, now the main thing is that the cryptocurrency in India should be legalized.

hugeblack

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It's a proposal, I thought it was a law?
Imposing taxes without a serious investment in how to track these currencies is considered useless and is specifically targeted at businesses that will try to accept bitcoin such as stores and others, but it is difficult to track traders, especially in a country like India.
It's also motivating users to buy and avoid selling.

In general, I hope it becomes a law to get rid of the topic of "India's ban of cryptocurrencies"

Darker45

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When it comes to taxes, I think the best way to go is moderation. There was a proverb I encountered a long time ago referring to a string instrument which goes like, don’t tighten the string too much, it breaks; don’t loosen it too much as well; it doesn’t make a sound. This is also how taxation should be handled by governments. An unreasonably high tax will discourage businesses or investors or even honesty from their declarations while too low taxes will also limit government revenue. It will have to be moderate as not to shoo away people and companies to tax havens or force them to hide taxable income but also not deprive the country of what it deserves from the income of its people and companies.

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Quote from: Bttzed03 on February 02, 2022, 07:30:35 AM

Quote from: boyptc on February 02, 2022, 06:21:32 AM

It's like ban or taxation.

I guess people from there would be fine if they just impose the ban and just keep quiet keeping their digital assets from them. Since they're not even going to know who are the people that holds and has it.

They will probably find it hard to implement this tax law at the beginning but I bet they have the means to track those who previously used custodial/centralized platforms to trade.

Yes, those that have records already in centralized exchanges, they can ask those exchanges for the files and data of their countrymen that have used their platform.

That's the first step that they'll surely do if they want to get serious on tracking those just to have an idea who are these people that have at least owned or traded crypto and is likely still holding presently.

takngantuk

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great step to legalize crypto, but I don't agree with 30%. isn't that too big?
If this policy is legalized, I think there will be a lot of people against it. because the percent of the tax is too high, and does not make sense if applied. they should come up with a new better proposal and change the 30% to a reasonable numbers.

Leviathan.007

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Quote from: Bttzed03 on February 01, 2022, 11:45:34 PM

If you're wondering why they used 'Digital Assets' instead of 'Currency', they do not recognized crypto as a currency. The PM said it only becomes a currency when it is issued by the Central Bank (CBDC) and anything outside it is an Asset.

Many other people believe in the same way and they think digital currency is not actually cryptocurrency including myself because the digital currency is not actually encrypted like cryptocurrency is decrypted and that's not centralized at all so I believe is the same way. Regarding the tax, I think there will be more countries trying to take tax from their people instead of selling products to the other countries because even during the time when they cannot trade to other countries they can still have income from the tax they take.

Bttzed03

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Quote from: ultrloa on February 02, 2022, 07:22:49 AM

its just a proposal and provably many people who use bitcoin will protest against it since this plan made by their official can really hurt their pockets. Maybe this is their first step to discourage people to use crypto that's why this is pushed by certain official but hopefully this one will never pass so that people will not get affected to much on those possible implementation.

I would not dismiss this as a mere proposal because it's their Finance Prime Minister who is already talking. I won't be surprised if it becomes a law by next month.

Quote from: mindrust on February 02, 2022, 07:00:19 AM

This is pretty hardcore. It is like they banned crypto without actually banning it.

Nailed it.

Quote from: mindrust on February 02, 2022, 07:00:19 AM

~
When it comes to what bitcoin really is though, I guess everybody is free to make his/her own definition because it is decentralized. Some people define it as a currency, some other say it is an asset, some people would even dare to say it is nothing but a scam...

Who cares about what they say?

Yeah we have different view but I still find it important to make a clear distinction from their perspective.

Quote from: Wind_FURY on February 02, 2022, 06:53:02 AM

The solution is simple if you’re a Bitcoin HODLer. DON’T SELL, HODL.

OP, does India have the same rule that if you are HODLing your investment for more than one year, the profit is considered a “long-term gain”, and therefore the taxes are calculated at a lower rate than”short-term gains” of investments held less than one year?

Based on what I read, it seems like they made theirs much simpler. Taxes can only be applied when you transfer or sell your crypto. Anyway, it won't be long before this proposal becomes a law. Let's wait for that to get more details.

Quote from: boyptc on February 02, 2022, 06:21:32 AM

It's like ban or taxation.

I guess people from there would be fine if they just impose the ban and just keep quiet keeping their digital assets from them. Since they're not even going to know who are the people that holds and has it.

They will probably find it hard to implement this tax law at the beginning but I bet they have the means to track those who previously used custodial/centralized platforms to trade.

Quote from: Jawhead999 on February 02, 2022, 04:42:31 AM

IMO they need to make the tax is tiered and not fixed as long as someone made profit.

For now, it's 30% but who knows if there will be future amendments? Maybe the crypto community there could have some power to make suggestions in the near future.

Quote from: jackg on February 02, 2022, 12:46:13 AM

~ I'm sure therell be many fancy ways the cost of acquisition thing can have exploitable loopholes too unless it's very specific in the legislation.

We'll have to wait and see the actual law when it's out.

ultrloa

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its just a proposal and provably many people who use bitcoin will protest against it since this plan made by their official can really hurt their pockets. Maybe this is their first step to discourage people to use crypto that's why this is pushed by certain official but hopefully this one will never pass so that people will not get affected to much on those possible implementation.

Haunebu

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Just another stupid proposal which may/may not become the law. I have no idea why so many people take these proposals seriously even though they haven't been approved/rejected yet. Such people need to improve their brain-power.

The Indian government clearly gave up on banning cryptocurrencies directly and are trying to regulate them in this manner.

If this particular proposal actually ends up getting approved and legalised, I believe that Indian crypto traders will find a way to circumvent this issue just like they have done so many times in the past.

mindrust

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This is pretty hardcore. It is like they banned crypto without actually banning it.

Quote from: Bttzed03 on February 01, 2022, 11:45:34 PM

If you're wondering why they used 'Digital Assets' instead of 'Currency', they do not recognized crypto as a currency. The PM said it only becomes a currency when it is issued by the Central Bank (CBDC) and anything outside it is an Asset.

What are your thoughts on this?

When it comes to what bitcoin really is though, I guess everybody is free to make his/her own definition because it is decentralized. Some people define it as a currency, some other say it is an asset, some people would even dare to say it is nothing but a scam...

Who cares about what they say?

Topic: India's 30% tax on income from digital asset - page 5. (Read 665 times)