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?
Topic: India's 30% tax on income from digital asset - page 6. (Read 682 times)
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.
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.
IMO they need to make the tax is tiered and not fixed as long as someone made profit.
I agree, it should be like this. The higher profit, the higher taxation so that small traders and investors won't be hurt that much with this imposed taxation. 
They don't have any choice if the government want to legalize crypto and took insane fees, at least they're happier than the crypto is banned. Many people doesn't want to pay large fees, most probably they will do anything to avoid tax just like in few years before when crypto is banned in india... they will do anything to hold and trade crypto. IMO they need to make the tax is tiered and not fixed as long as someone made profit.
- 30% tax on all income/profit from sale/transfer of Digital Assets
- Losses are also non-deductible or cannot be used as an offset against other income
This seems like quite a harsh rule to expect to implement. It means speculators there won't be able to take as much of an advantage of the market in case something goes wrong - might make things like scalping and swing trading seem more risky.
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.
What governments like this one do is kill the goose that lays the golden eggs.
High taxes on innovators is a very good way to destroy innovation. Many countries have an "entrepreneurs' relief" for such a reason which normally reduces tax or spreads it out.
High taxes as in this case motivate people to underreport sales in order to avoid paying them or otherwise circumvent the law. There are more than a few cases throughout history where lowering taxes has raised more money.
What governments like this one do is kill the goose that lays the golden eggs.
...especially when they lowered the personal income tax rates and the Capital Gains Tax appears lower too. It seems like they really want to get the most from crypto retail traders and investors because they know that there is a strong demand and a large number of transactions.
What governments like this one do is kill the goose that lays the golden eggs.
The proposal by the Indian Finance Prime Minister as announced during the Budget 2022:
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?
It's a double edge to me. We have the legalization aspect (after so many ban proposals) but the rate looks quite high especially when they lowered the personal income tax rates (for certain income brackets) and the Capital Gains Tax appears lower too. It seems like they really want to get the most from crypto retail traders and investors because they know that there is a strong demand and a large number of transactions.
https://timesofindia.indiatimes.com/business/india-business/30-tax-on-digital-assets-all-you-need-to-know/articleshow/89267925.cms
- 30% tax on all income/profit from sale/transfer of Digital Assets
- No deductions allowed in the tax computation except the cost of acquisition
- Losses are also non-deductible or cannot be used as an offset against other income
- 1% Tax Deducted at Source (If I understand correctly, it's similar to Withholding Tax)
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?
It's a double edge to me. We have the legalization aspect (after so many ban proposals) but the rate looks quite high especially when they lowered the personal income tax rates (for certain income brackets) and the Capital Gains Tax appears lower too. It seems like they really want to get the most from crypto retail traders and investors because they know that there is a strong demand and a large number of transactions.
https://timesofindia.indiatimes.com/business/india-business/30-tax-on-digital-assets-all-you-need-to-know/articleshow/89267925.cms
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