Taxation of 30% on gains from Bitcoin investment?

bryant.coleman

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Quote from: bitterguy28 on December 08, 2020, 12:40:06 AM

Indian Government has too many issue about crypto,from regulating to banning and now here again pushing the Bitociner to divert to other currencies.
but it is obvious that since they are seeking for 30% taxation then they already knew how much money can accumulate allowing crypto in their economy.
but 30% is a BS decision if they will implement that and will affect also to bitcoin community.

30% is the normal income tax in India and therefore we can't term it as unfair. But if they regulate the cryptocurrency and make it 100% legal, then it will be a big boost for the sector in India. Because cryptocurrency users face a lot of issues, due to the unclear legal status. Being a regular visitor to India, I have faced issues multiple times, while attempting to trade in cryptocurrency.

bitterguy28

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Quote from: Wysi on December 06, 2020, 07:28:22 AM

If the source is true then Indian investors have to find an alternative or just switch to DEX as Indian government might impose tax of 30% on gaina from Bitcoin investment. I don't think this will work and even if there is a tax bracket it should be much lesser because Bitcoin and crypto are not like any other business as people might end up losing their capital in crypto investment. I think government shouldn't be rushing to tax on crypto without understanding the concept of crypto as taxing on gains would be like a planned extortion.

Indian Government has too many issue about crypto,from regulating to banning and now here again pushing the Bitociner to divert to other currencies.

but it is obvious that since they are seeking for 30% taxation then they already knew how much money can accumulate allowing crypto in their economy.

but 30% is a BS decision if they will implement that and will affect also to bitcoin community.

Sithara007

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The biggest challenge facing Indian cryptocurrency users is not the high taxes, but the lack of clear legal status for cryptocurrency. No one has any issue in paying the taxes (even if they are as high as 30%). What bothers us is the harassment from the authorities, when we want to trade or invest in cryptocurrency. If the government decides to tax profits from cryptocurrency, then I will welcome that measure.

Lorence.xD

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Quote from: cryptoboss2020 on December 07, 2020, 10:40:41 PM

look like goverment need money and try to squeeze people out of money.
its all fine to support your goverment but the goverment never tells you how they are going to use the tax money.

Tax money is used to build roads, schools, bridges and other infrastructures, fund relief operations, make the circulation of money more diverse, pay government employees. There should be a public records for government expenditures look it up. I do not agree with the taxation of bitcoin especially the 30% but we all shouldn't demonize tax because in a way, we benefitted from it one way or another, it is also hypocritical of us to hate taxes because we already are paying one no matter what.

cryptoboss2020

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look like goverment need money and try to squeeze people out of money.
its all fine to support your goverment but the goverment never tells you how they are going to use the tax money.

AakZaki

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Quote from: Twinkledoe on December 06, 2020, 04:19:47 PM

30% is big for small crypto users, for sure. Seems it is hard to implement if they will not tie up with their local crypto exchanges.
~snip~

If you have 1 Bitcoin profit in asset, the tax is 0.3 Bitcoin, you can say this is extortion by the state. If this applies then it is possible that the crypto industry India will die. So I think they (tax collectors) must really understand about this. They must consider the tax targets and further developments. Crypto is just about to grow already but it's already running into a huge tax wall. In the end it could just be a FUD to panic crypto players in India.

MCobian

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Imposing a 30% tax on Bitcoin investments is a bad decision, it will only make the cryptocurrency community
in India avoid taxes. I hope the Indian government changes its decision and lowers the tax on Bitcoin investment,
my advice is the 5% tax makes more sense to apply. I think the Indian government only wants to recover the
economy in India quickly by expecting a tax of 30% from Bitcoin investment.

cdtc

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30% on gains from bitcoin is just too much, I think that there should be not tax at all.
Governments now days want to tax everything, there is only more and more bureaucracy and there should be less.
Soon we will pay a tax for emitting CO2 too.

Stedsm

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Chill, our government will be able to find out BTC transactions, but not the Dash or XMR ones. And what if we use mixers to hide our coins? People of India are called "jugadu", they can handle anything coming over them. Let's see how it goes with the crypto community, our government is already having a two-edged sword hanging on their heads as they messed up with the Sikh community who are currently the highest in number in terms of farming.

Daniel91

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Quote from: Wysi on December 06, 2020, 07:28:22 AM

If the source is true then Indian investors have to find an alternative or just switch to DEX as Indian government might impose tax of 30% on gaina from Bitcoin investment. I don't think this will work and even if there is a tax bracket it should be much lesser because Bitcoin and crypto are not like any other business as people might end up losing their capital in crypto investment. I think government shouldn't be rushing to tax on crypto without understanding the concept of crypto as taxing on gains would be like a planned extortion.

Taxation of 30 % on gains from btc investment?
It's to much really.
If this information is correct, then the crypto tax we pay in my country, Croatia, of only 12%, is really very low.
When I think that even those 12% seemed like a lot to me Grin

aesma

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Quote from: cryptoboss2020 on December 07, 2020, 10:39:47 AM

Quote from: Wysi on December 06, 2020, 07:28:22 AM

If the source is true then Indian investors have to find an alternative or just switch to DEX as Indian government might impose tax of 30% on gaina from Bitcoin investment. I don't think this will work and even if there is a tax bracket it should be much lesser because Bitcoin and crypto are not like any other business as people might end up losing their capital in crypto investment. I think government shouldn't be rushing to tax on crypto without understanding the concept of crypto as taxing on gains would be like a planned extortion.

Lol 30% its risky the cryptocurrency are like gamle and its highly volatility*
Nobody in his right mind dont pay 30% this is insane

Capital gains are taxed. No gain, not tax. Depending on how you are supposed to report your gains you might even have the ability to use losses from a year to reduce the gains from another year.

Wysi

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Quote from: Strongkored on December 06, 2020, 11:17:54 PM

This tax is quite high and will definitely make crypto investors feel aggrieved by this regulation, this could be done by the Indian government because seeing the potential tax they will receive is very high from the crypto world, with this situation it might be slow down crypto adaptation because people will be reluctant to pay high taxes.

Yes, had it been a reasonable amount of tax it would be fine but 30% is way too much and this will definitely put the investors at vulnerable situation and slow down the adaptability rate of bitcoin in India. If India successfully imposes tax on Bitcoin then other countries will follow the same and cause huge damage to Bitcoin.

This will be a huge loss for centralized exchanges as people will stop using centralized exchange as KYC is the only way to track Bitcoin investment which government would use to track the users.

Spack17

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It looks like Indian government doesn't really know what it is doing. I think that a taxation of 30% is very unfair and ridiculous. It is a big load on Bitcoin investors. If you want to make a regulation for Bitcoin, it should be balanced so that people will be happy about it too.

CODE200

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Quote from: cryptoboss2020 on December 07, 2020, 10:39:47 AM

Quote from: Wysi on December 06, 2020, 07:28:22 AM

If the source is true then Indian investors have to find an alternative or just switch to DEX as Indian government might impose tax of 30% on gaina from Bitcoin investment. I don't think this will work and even if there is a tax bracket it should be much lesser because Bitcoin and crypto are not like any other business as people might end up losing their capital in crypto investment. I think government shouldn't be rushing to tax on crypto without understanding the concept of crypto as taxing on gains would be like a planned extortion.

Lol 30% its risky the cryptocurrency are like gamle and its highly volatility*
Nobody in his right mind dont pay 30% this is insane

Would be better if you will arrange your idea to be more comprehended.
Taxation on the profit from Bitcoin investment has nothing to do with risks. It can only be either a burden or something fair enough for an investor. This has also nothing to do with gambling and its volatility, at its broadest sense.

Sad to say but this technology has no other option but to comply with regulation if we will seek global acceptance. De centralization would be a factor to the occurrence of this acceptance from different countries. Indeed many of us sees the advantages of being decentralized but that's just how things works not only in this technology.

cryptoboss2020

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Quote from: Wysi on December 06, 2020, 07:28:22 AM

If the source is true then Indian investors have to find an alternative or just switch to DEX as Indian government might impose tax of 30% on gaina from Bitcoin investment. I don't think this will work and even if there is a tax bracket it should be much lesser because Bitcoin and crypto are not like any other business as people might end up losing their capital in crypto investment. I think government shouldn't be rushing to tax on crypto without understanding the concept of crypto as taxing on gains would be like a planned extortion.

Lol 30% its risky the cryptocurrency are like gamle and its highly volatility*
Nobody in his right mind dont pay 30% this is insane

Light

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I am against a tax on Bitcoins per se - given the principle that Bitcoin was meant to be a currency not an investment asset. I would consider one requirement of this that Bitcoin have fairly stable pricing over the short term (which obviously it does not). As such, given that it is primarily viewed and used as a speculative investment asset, it is appropriate for it to be taxed similarly to other capital gains. As to the particulars, whether it's specifically 30%, the fairness of that IMO is dependent how the tax dollars are spent where you live.

lifeforcepools

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Taxation of 30% is robbery. The crypto tax should not exceed 12%.

BuNga_cute

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In my opinion, it is extortion if the Indian government imposes a tax of 30% on the profit Bitcoin investment. Because the 30%
tax is very burdensome to investors, the government should immediately reduce the tax imposed on investors. Otherwise investors
from India will move their Bitcoin to avoid taxes. It will cost the Indian government a loss of tax revenue.

jseverson

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Quote from: ranochigo on December 06, 2020, 08:30:49 AM

Taxation on capital gains is fairly common. Places without those taxes usually attracts billionaires so that their wealth will be taxed less significantly. Attempting to prove the extent of your capital gains would be an administrative nightmare, in terms of determining how much to tax so I don't expect most countries to start taxing cryptos yet. It's not that unfair to impose a high tax on capital gains though, IMO.

I would normally agree, but capital gains are usually only taxed at 15-20% in India. That explains this part of the news:

Quote from: https://www.coindesk.com/india-plans-to-tax-income-from-bitcoin-investments-report

Some experts are anticipating a 30% tax on cryptocurrency gains, and many are advising their clients to file bitcoin returns as capital gains, which are associated with stocks, according to the article.

...but then again would it really be that simple to circumvent that? Only time will tell, and we don't even know if it's going to happen to begin with, but taxing crypto more just for the sake of it leaves a bad taste in my mouth. At the end of the day though, I don't think India's tax agency is anywhere near as potent as the IRS, so smaller players may be able to get away with cheating on their tax returns lol.

Yamifoud

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I'm not sure how this been so applaudable. This is certainly not a fair decision if this going to be true, 30% tax is very huge and I can't imaginer if these investors could still make money from their investment coz it only be eaten up by fees and tax. They are just milking Bitcoin investors for this situation and this could have a negative response from the community. This is to think that these leaders never give importance to the investors but always think for their own.

Bitcoin_bullish

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Taxation will come as regulation and acceptance of Bitcoin is increasing. In my opinion governments when imposing taxation should also have in mind the risk of these volatile assets as governments are not participants whn prices drop or trades go bad. It should be a taxation on trading or investing when these profits are realized and not when you are holding Bitcoin or any cryptocurrency. Prices are very volatile and taxing when prices is high is actually extortion if there is no withdrawal in fiat involved.

acquafredda

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Quote from: aesma on December 06, 2020, 08:19:43 PM

If you bought 1 BTC at the lowest price this year and sold at the highest price, you made 5 times your initial investment, with 0 work. Why shouldn't it be taxed ?

In my country (France) until a couple years ago capital gains were taxed as income, that was an advantage for poor people (but poor people rarely have capital gains) as their income tax is low, 0% or 11%, but for middle class people it was 30% and then 41%, 45% or more for rich people. That applied to crypto but also stocks.

Now this has been changed and it's 30% across the board. Some losers, some winners.

Of course in France we get a lot of stuff from our taxes, in India that's another story.

We have a similar situation as I wrote earlier, now we only have a 4% difference in capital gain taxes. You are right, sometimes people tend to forget what taxes are for actually and one will realized what there is behind paying that much only when in need (this happened to me to after having a surgery operation coming from ER).
There are loads of free riders (especially rich people who avoid to pay many of their taxes) and this reflects on the many differences if you find from North to South.

Regarding bitcoin I would like to see a flat tax only on realized gains (with no crypto to crypto taxation, which are a complete mess) when we cash out euro.

peter0425

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Quote from: Wysi on December 06, 2020, 07:28:22 AM

If the source is true then Indian investors have to find an alternative or just switch to DEX as Indian government might impose tax of 30% on gaina from Bitcoin investment. I don't think this will work and even if there is a tax bracket it should be much lesser because Bitcoin and crypto are not like any other business as people might end up losing their capital in crypto investment. I think government shouldn't be rushing to tax on crypto without understanding the concept of crypto as taxing on gains would be like a planned extortion.

They can't just Implement this without having a table with the investors and learn what would be the effect in case this Huge taxation will be Putting on their obligation because for sure Bitcoin investors and traders from India will divert to altcoins that may not be having 30% taxation.

What the government of India seeing is when the Market is bullying but not considering once dumping when Traders experience losses .

manfredmann

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So we can go back to fiat currency because tax are only ranging from 6% - 25% but average tax taken from the government is usually at 10-15%.

30% is so big and no wonder it could kill the cryptocurrency if it will be like that besides how can they assess about earnings? What if it did not earn because it is a loss?

This means that the 30% tax is not good and the only afency tha could benefit in this are those who take the 30% tax.

fiulpro

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Hello
A tax of 30% ?
Well check the source again since when I tried to find something like this it was written how it was supposed to be imposed on people who earn more than 10 lakhs only. Therefore I do believe that even if you are earning more than 10 lakhs from bitcoins then it would be really wrong to actually try and take this kind of money from people.

Quote

For eg, if his taxable income exceeds Rs 10 lakh, he would be liable to a tax @ 30% as against the flat rate of tax of 20% he would be liable to pay if charged to tax under long-term capital gains.

- I think is this the source you were talking about ??

:::::: But at the same time this is not going to work , what they are trying to do is :- to channel these investors in the upcoming digital rupee, on which I believe they will impose less tax or maybe none at all.

This is really bad since this time we can clearly see which side is trying to benefit from a currency which was supposed to empower people.

dizzy1996

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I agree that 30% is too high a fee for investing in bitcoin, but in general this is all understandable since the local authorities perceive cryptocurrency as an ordinary business, they have no idea that this area can improve many segments of the economy and this is regrettable and I do not like it that the authorities are shaking large taxes and do not allow the development of this area to the full

Vishnu.Reang

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Quote from: kentrolla on December 07, 2020, 12:13:58 AM

OMG that's a big number 30% in profit for tax is too much and unfair I really don't understand how the government is calculating the taxations, also I don't think they are favouring this technology else they might have planned according to it. However I am not aware of the source if this is true then definitely people will move to the alternate source to save their profits.

Have you read my previous post? If not, read it to get yourselves educated about the situation. First of all, 30% is not abnormal and in many of the countries the rates are much higher than this. And secondly, 30% is the maximum possible tax. If you are in the lower tax slabs, then you pay a much lower tax rate. In India, the maximum rate kicks in only when your annual salary (after deductions) is above ₹1,000,000. And less than 1% of the Indian population earns that much.

kentrolla

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OMG that's a big number 30% in profit for tax is too much and unfair I really don't understand how the government is calculating the taxations, also I don't think they are favouring this technology else they might have planned according to it. However I am not aware of the source if this is true then definitely people will move to the alternate source to save their profits.

bryant.coleman

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Quote from: electronicash on December 06, 2020, 04:37:59 PM

30% is too big. the reason why investors are going to crypto is because of hope that they get rich with it but now this 30% is like a punishment for investing in crypto. couldn't they just banned this instead Grin

but i think 30% is just a proposal, there could be changes to it. is OP is encouraging tax evasion? Grin

DEX will help as long as you are not going to cash out going to your local bank.

No. 30% is not that big. Most of the other countries do have tax slabs which are far higher. For example, the topmost tax slab in the United States is 39.6%. Most of the European countries have tax rates which are much higher than this. So I would say that if the Indian government regulates Bitcoin and makes the gains taxable at this rate, then it is fair towards the cryptocurrency users.

Strongkored

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This tax is quite high and will definitely make crypto investors feel aggrieved by this regulation, this could be done by the Indian government because seeing the potential tax they will receive is very high from the crypto world, with this situation it might be slow down crypto adaptation because people will be reluctant to pay high taxes.

danglongbtc

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That is India and you don't know people. They won't pay that much taxes ever as they transact in cash. There are many local bitcoin p2p networks where government can't even know about any size of BTC buy/sell trade. When withdrawals won't touch banks, there is no taxable income. In order to overcome this, Indian government has recently announced 100% penalty on 200K p2p cash transactions on same day. I mean if if two parties are dealing with more than 200K cash, how will govt. track the transactions? So, take this thing on paper only!

Vishnu.Reang

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More than two dozen posts and none of them on the subject. I am a resident of India, and most of the cryptocurrency users are actually paying 30% tax on their gains from cryptocurrency right now. So this is not going to make much difference. A few of the users have classified their gains as "long term capital gains", which would enable them to pay a lower tax rate (20% in case the investment is more than three years old). But this is a very risky move, as the government of India hasn't clarified whether the investment in cryptocurrency qualifies for the LTCG tax. If any complications arise later, these users will get a notice from the IT department.

yazher

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Quote from: Wysi on December 06, 2020, 07:28:22 AM

If the source is true then Indian investors have to find an alternative or just switch to DEX as Indian government might impose tax of 30% on gaina from Bitcoin investment. I don't think this will work and even if there is a tax bracket it should be much lesser because Bitcoin and crypto are not like any other business as people might end up losing their capital in crypto investment. I think government shouldn't be rushing to tax on crypto without understanding the concept of crypto as taxing on gains would be like a planned extortion.

A few months ago, they are targetting local farmers and now the investors are not safe as well. what do they mean by that huge of tax? isn't that over-taxation for a holder of BTC? If it's not bad to swear in this forum I would have done so, I mean, how could the government think of such nonsense? I guess living in our country is the best place for a holder of BTC because the government doesn't really care about it and there is no taxation at all at least for now.

idrisalomagold

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I think the government is always on the move of discouraging crypto-related transaction in the first place as they have no control over the network and its underlying. However, beyond the network, they have access to such as compliant exchanges. But 30% tax on gains from bitcoin investment will depend on either gross or on capital gains and that amount is a huge hit to all bitcoin holders, IMO.

Consequently, its adverse effect is seen on the people using crypto in their daily activities, especially to those day-traders within compliant exchanges.

aesma

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If you bought 1 BTC at the lowest price this year and sold at the highest price, you made 5 times your initial investment, with 0 work. Why shouldn't it be taxed ?

In my country (France) until a couple years ago capital gains were taxed as income, that was an advantage for poor people (but poor people rarely have capital gains) as their income tax is low, 0% or 11%, but for middle class people it was 30% and then 41%, 45% or more for rich people. That applied to crypto but also stocks.

Now this has been changed and it's 30% across the board. Some losers, some winners.

Of course in France we get a lot of stuff from our taxes, in India that's another story.

electronicash

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30% is too big. the reason why investors are going to crypto is because of hope that they get rich with it but now this 30% is like a punishment for investing in crypto. couldn't they just banned this instead Grin

but i think 30% is just a proposal, there could be changes to it. is OP is encouraging tax evasion? Grin

DEX will help as long as you are not going to cash out going to your local bank.

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Quote from: AakZaki on December 06, 2020, 04:06:49 PM

I just heard this, it might be difficult if applied in my country. As far as I know, cryptos participate as income tax and that too if it is reported. How did this happen? Will they cooperate with the exchange? This means that it has something to do with KYC, but it is also against prifasi. If I compare it to the tax code in my country, 30% is the tax for those who earn above - + $ 33,000. Maybe this is light for the whales but what about a small trader or a small minner, I think 30% is big.

30% is big for small crypto users, for sure. Seems it is hard to implement if they will not tie up with their local crypto exchanges. If they want, they can already automatically tax those users whenever they make transaction with the exchange. But the exchange needs to be clear about this regulation and disclose it to their users. And also, some crypto users are using p2p platforms to exchange their crypto to fiat. So this area is still vague for me how they can define tax rules and be strict with it.

AakZaki

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I just heard this, it might be difficult if applied in my country. As far as I know, cryptos participate as income tax and that too if it is reported. How did this happen? Will they cooperate with the exchange? This means that it has something to do with KYC, but it is also against prifasi. If I compare it to the tax code in my country, 30% is the tax for those who earn above - + $ 33,000. Maybe this is light for the whales but what about a small trader or a small minner, I think 30% is big.

JeromeTash

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Quote from: 100bitcoin on December 06, 2020, 09:59:14 AM

AFAIK, Bitcoin is only taxable when it is converted to FIAT. If they apply 30% on gain then how would people earning bitcoin be taxed?

My guess is they won't give a fuck on how much gains one had made out of crypto; What they will do is monitor your trading activity through any KYC/AML compliant exchange and then tax 30% of what you convert to fiat.
Those who still use non-KYC p2p exchanges will still be able to evade this.

biosupdate2020

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This is absolute shameful behavior on behalf of the India government. They are effectively banning/censoring technology through extreme taxation. It's so obvious, but it is hard for their citizens to react to because 1) Financial law is already convoluted and 2) It doesn't affect those who aren't interested in cryptography tech. Government overreach is the word I'm looking for. But I suppose it is par for the course in 2020. Angry

wxa7115

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Quote from: coolcoinz on December 06, 2020, 12:06:13 PM

30% is a ripoff, but it's also an unwise move by the government. Taxation should be high enough to sustain the basic needs of the central government, but also low enough to discourage evasion and moving abroad. IMO 10-15% tax is close to ideal. 30% is a joke. Poor people will hide their coins and rich people will move abroad to sell.

I think the same I understand we have to pay taxes since the government needs funding but the taxes need to be as low as possible to encourage investment and to avoid evasion, but with a tax that is so high those that can move their lives abroad are going to move to jurisdictions where the taxes are low or zero while those that cannot do it are going to try to avoid detection by just making small transactions.

So I do not think the government of India is going to get a lot of money out of this as people are not going to comply and pay such a high tax when to their minds it is completely unjustified.

coolcoinz

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30% is a ripoff, but it's also an unwise move by the government. Taxation should be high enough to sustain the basic needs of the central government, but also low enough to discourage evasion and moving abroad. IMO 10-15% tax is close to ideal. 30% is a joke. Poor people will hide their coins and rich people will move abroad to sell.

bryant.coleman

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Quote from: Wysi on December 06, 2020, 07:28:22 AM

If the source is true then Indian investors have to find an alternative or just switch to DEX as Indian government might impose tax of 30% on gaina from Bitcoin investment. I don't think this will work and even if there is a tax bracket it should be much lesser because Bitcoin and crypto are not like any other business as people might end up losing their capital in crypto investment. I think government shouldn't be rushing to tax on crypto without understanding the concept of crypto as taxing on gains would be like a planned extortion.

There are a lot of rumors and FUD related to the situation of Bitcoin in India. And everytime, these rumors were proved to be false. That said, I won't be much surprised if the government imposes a 30% tax on gains from Bitcoin. The highest tax bracket is 30% and gain from investment in unrecognized assets such as Bitcoin may fall within that slab. But you should not complain too much. In some of the other countries, the tax rate is much higher than this.

acquafredda

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In Italy we have a very impossible to grasp taxation framework for cryptocurrencies. Capital gain taxes on bitcoin and other shitcoins is at 26%. The only good thing is that we only pay if we realize those gains but that is quite a huge price to pay to the gov.

ChrisPop

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Whether we like it or not, taxes are a part of our current working society. Capital gains from any kind of investment should be treated equally in my opinion. I don't know what the tax rate for cap. gains is in India for equity instruments, but 30% is very high. This is not encouraging for investors.

What I suggest is to look to establish an outshore company if you have a big bag and maybe move residency there. Better talk to a tax consultant.

error08

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Fortunately, we don't have to deal with such a problem here, a nightmare of taxes on capital gains.
If there is a way to avoid taxes, better to stay away from local exchanges, trade on a foreign exchange like Binance, trade on decentralized exchange or peer to peer, and then withdraw in the form of digital currency such as skrill, paypal, etc.

Kupid002

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Quote from: Wysi on December 06, 2020, 07:28:22 AM

If the source is true then Indian investors have to find an alternative or just switch to DEX as Indian government might impose tax of 30% on gaina from Bitcoin investment. I don't think this will work and even if there is a tax bracket it should be much lesser because Bitcoin and crypto are not like any other business as people might end up losing their capital in crypto investment. I think government shouldn't be rushing to tax on crypto without understanding the concept of crypto as taxing on gains would be like a planned extortion.

Did the government think if you own a Bitcoin you are rich people? and earn a lot in there I think they need to invest first or make a seminar how this crypto currency works before asking that much tax ? That too much tax to be asked for me the reasonable tax to pay is around ,10-12% that's actually too high but it's reasonable if they only ask that from gain of investors and not from the capital they use to trade crypto currency.

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Maybe this would work on third party networks, since it speaks for profit from investment which will more likely be determined upon converting your cryptos to fiat. Bitcoin and other cryptos are having a good run for this year and to how I view this, given that economies are struggling at this moment, they will hold to things which will generate money to suffice the needs of the economies and to avoid total crisis, perhaps in this case taxation or regulation to crypto investments. Trading was banned in India before and was recently pulled the decision to just regulate this technology in that area. People of this region won't be able to do anything from it unless there will be an alternative way for them to avoid being taxed whenever they will convert to fiat.

The question I am having is that, what if the market again become bearish? Will they still choose to regulate this technology or to again prohibit its usage? 'coz I think they just allowed the use of it in order to generate taxes on the opportunity this bullish market is having.

RapTarX

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Quote from: 100bitcoin on December 06, 2020, 09:59:14 AM

Care to share the source of this news? AFAIK, Bitcoin is only taxable when it is converted to FIAT. If they apply 30% on gain then how would people earning bitcoin be taxed?

Coindesk made the report and coinbase featured the news on their news section- https://www.coindesk.com/india-plans-to-tax-income-from-bitcoin-investments-report?amp=1
While it's good that our govt is giving a fuck to the crypto (it's good in many ways for crypto adoption in India), 30% is too much and indicating a negative outlook. Govt is discouraging investment in Crypto, reasonable though.

Question123

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If they want to tax bitcoin I think they need to tax only to the business related to the bitcoin that is located to their country.

30 percent is very big amount and It is not right how about those people who are earn a little only. They need to focus to the big business related to the bitcoin and get some taxes to them not all the small investors who earn small a lot of profit.

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Quote from: Wysi on December 06, 2020, 07:28:22 AM

I don't think this will work and even if there is a tax bracket it should be much lesser because Bitcoin and crypto are not like any other business as people might end up losing their capital in crypto investment.

In many developed countries there is an income tax on BTC, you pay that tax only when you convert that crypto to fiat - and only if you make profit. If there is no profit, it is logical that you will not pay any taxes.

30% is a lot, but some countries have higher taxes - let's say Japan has up to 55%, and the rates depend on how much the profit is. As far as I know in the EU this tax is mostly 20-30%, with some countries having special laws on paying a tax rate of 0% if the crypto is kept for more than 1 or 2 years from purchase. I don't know why people are surprised by paying taxes on crypto earnings, crypto can't be exempted from all that if we want it to be accepted as something completely legal.

Quote from: 100bitcoin on December 06, 2020, 09:59:14 AM

Care to share the source of this news?

I took 5 seconds of my time and found the source Wink

100bitcoin

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Quote from: Wysi on December 06, 2020, 07:28:22 AM

If the source is true then Indian investors have to find an alternative or just switch to DEX as Indian government might impose tax of 30% on gaina from Bitcoin investment. I don't think this will work and even if there is a tax bracket it should be much lesser because Bitcoin and crypto are not like any other business as people might end up losing their capital in crypto investment. I think government shouldn't be rushing to tax on crypto without understanding the concept of crypto as taxing on gains would be like a planned extortion.

Care to share the source of this news? AFAIK, Bitcoin is only taxable when it is converted to FIAT. If they apply 30% on gain then how would people earning bitcoin be taxed?

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Quote from: Wysi on December 06, 2020, 07:28:22 AM

If the source is true then Indian investors have to find an alternative or just switch to DEX as Indian government might impose tax of 30% on gaina from Bitcoin investment. I don't think this will work and even if there is a tax bracket it should be much lesser because Bitcoin and crypto are not like any other business as people might end up losing their capital in crypto investment. I think government shouldn't be rushing to tax on crypto without understanding the concept of crypto as taxing on gains would be like a planned extortion.

I think 30% taxation is unfair and just too much. I don't know about other countries, but it's a fact that in mine people give about half of their money as taxes for the needs of the state on average (this is because there are different taxes to pay, including VAT which is incorporated into every price of every thing), so it's already a huge chunk of money going mainly (in my country) into the pockets of those in power. I think reasonable low crypto taxes (how about 5%?) could be both something the state could benefit from AND something people would actually pay rather than keep their coins a secret.

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Like I always tell my close pals, not everyone is happy with the sudden rise in bitcoin,this 30% taxation by the India government is just to scare investors into crypto that just the summary of it all, not everyone is happy about it and 30% is too much for a tax and if this continues believe it will push away investors both in India and anyway around the world....it so sad to here this

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Taxation on capital gains is fairly common. Places without those taxes usually attracts billionaires so that their wealth will be taxed less significantly. Attempting to prove the extent of your capital gains would be an administrative nightmare, in terms of determining how much to tax so I don't expect most countries to start taxing cryptos yet. It's not that unfair to impose a high tax on capital gains though, IMO.

Wysi

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If the source is true then Indian investors have to find an alternative or just switch to DEX as Indian government might impose tax of 30% on gaina from Bitcoin investment. I don't think this will work and even if there is a tax bracket it should be much lesser because Bitcoin and crypto are not like any other business as people might end up losing their capital in crypto investment. I think government shouldn't be rushing to tax on crypto without understanding the concept of crypto as taxing on gains would be like a planned extortion.

Topic: Taxation of 30% on gains from Bitcoin investment? (Read 588 times)