This is going to be bad for the Indian Bitcoin community - page 3.

avikz

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Quote from: The Cryptovator on March 27, 2022, 08:32:36 AM

I am wondering how the government will handle non-custodial wallets transactions and DEX trade. And 30% Tax with 1% of transactions is quite ridiculous. It would apply only to Indian exchange, and likely India would notice all the exchanges as well. This will drive the trade of cryptocurrency in the black market in India. The rules look like discourage citizens from using Bitcoin. And yea, I agree that it's like cryptocurrency killing Misson. Indian government should research more about cryptocurrency and reconsider their decisions about TAX.

They do not have a plan to track DEX trades. The only way they can get the trading data is through the Indian exchanges running from Indian soil. It has been made mandatory for all users to complete full KYC and every single data to be transmitted to the government and Income tax department. That's why I was always very vocal against using India crypto exchanges. You would have no privacy on your crypto holding.

I don't think Indian government would reconsider this tax. Because the Finance ministry is seeing huge pressure from the banking lobby to completely ban cryptocurrencies in India. We all were expecting the same but never though that they will come up with 30% tax and no loss offset. They will probably wait for one or two years to see how much tax crypto is generating before taking a final decision on banning it! I mean, that's what we can expect from a regressive government!

The Cryptovator

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I am wondering how the government will handle non-custodial wallets transactions and DEX trade. And 30% Tax with 1% of transactions is quite ridiculous. It would apply only to Indian exchange, and likely India would notice all the exchanges as well. This will drive the trade of cryptocurrency in the black market in India. The rules look like discourage citizens from using Bitcoin. And yea, I agree that it's like cryptocurrency killing Misson. Indian government should research more about cryptocurrency and reconsider their decisions about TAX.

evilgreed

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This is basically day light robbery. The people who thought of this are greedy bastards. Imagine how big 1% per transaction is on top of the high transaction fees right now. This will easily turn off people who are about to get themselves into this industry and many may just get lut of it all together. This is insane! Have they no compassion for their fellow countrymen that are striving hard to open new doors for a better life? The very leaders that the people expect to help them are the ones pinning the people down and ridding them off of the chance for a better life! This is worrisome and sickening.

cheezcarls

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The government of India I believe is stll having some lack of clarity about cryptocurrencies. Although the 30% tax is at least fine rather than just an outright ban, but the additional 1% tax per transaction is a different story which is somewhat “controversial”.

Yes the Indians are thankful that the government aren’t banning cryptocurrencies, but comes with a heavy price on paying high taxes (especially per transaction). For sure, the government isn’t fully-friendly on the crypto industry.

Chato1977

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Quote from: KennyR on March 26, 2022, 01:32:27 PM

This is an expected one, because the ruling government have never participated in any of the interview to give their clear view on cryptocurrency usage. Once bill is passed in the parliament, they won't think of common public. The opposition party requested clarity on the law. For this, finance minister have an explanation stating we're into discussion and the plan is whether to continue if or not.

And India has not really a Crypto loving country as of the time so yes i think this has been expected to come literally for the crypto users in that region .

How i wish that the government will give credit to how the cryptonians brining economy to them and not just them taking taxes from their efforts.

riso2015

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The government always wants to take advantage, from every trade and transaction we do, the government does not want to lose, they will impose taxes on all crypto users, maybe from taxes the government takes profits, so it will have a bad impact on the bitcoin community in India, because the government does not provide facilities and convenience to the bitcoin community, but they only want profit from crypto currency.

buwaytress

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Out of curiosity though, just how many of you guys are going to be affected by this new tax? Not the 30%, the 1% on every trade (which if I understand is only on trades, not on spend transactions).

I mean, are you guys regularly trading to the point that this is bad for you? I mean, honestly speaking, I do end up paying just about that amount exchanging my crypto to fiat, I imagine if Indians got big enough a network and did P2P with very low spreads, that 1% could be equivalent to what someone like me would pay.

The comments I'm seeing sounds like the "Indian Bitcoin community" is just full of traders rather than users.

Beparanf

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Quote from: Ziskinberg on March 27, 2022, 03:15:27 AM

I'm not sure if India's economy is really in a hard situation executing taxes too high which is very opposite to the other countries where taxes still remains low and favorable. Double Tax can be devastating and burden to the crypto business, it may be they think that this business is really in massive growth? I'm not sure what really happens to them but honestly, that wasn't fair and this may result from discouraging people to use crypto. They'll somehow go for fiat instead which they only pay less.

Indian Government is not in favor with the use of cryptocurrency that's why they ban since it's very to regulate it for them. They just unban again with some additional tax set for all the traders to regulate it. So this news is just another way to stop there citizen to trade cryptocurrency or suffer a consequence for a massive tax in every transaction. It's take it or leave it ultimatum given by the government to its citizen. This is much acceptable than completely banning the used of crypto.

yazher

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Quote from: cheezcarls on March 26, 2022, 12:57:57 PM

What are your opinions on this one guys regarding the double taxes imposed by the Indian government to their crypto citizens? Thanks!

The best thing about it is they finally let their people use cryptocurrencies freely but there is a consequence which is the high tax rates imposed by their governments. How in the world do they impose such high taxes? do they not know if there is no trader, they don't earn anything at all?

It's ok to take advantage of the current situation but they also need to know that they need to have multiple persons to do the transitions in order for them to get taxes from their local exchanges and this kind of rule will cut their earnings because people will stop using it.

Ziskinberg

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I'm not sure if India's economy is really in a hard situation executing taxes too high which is very opposite to the other countries where taxes still remains low and favorable. Double Tax can be devastating and burden to the crypto business, it may be they think that this business is really in massive growth? I'm not sure what really happens to them but honestly, that wasn't fair and this may result from discouraging people to use crypto. They'll somehow go for fiat instead which they only pay less.

rahmad2nd

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Quote from: cheezcarls on March 26, 2022, 07:43:44 PM

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Why so emotional about this?

I'm not from India, but imagine if this is also implemented in the country I lived in. The 1% transaction is definitely painful. Double tax is too much. For now, my country doesn't have crypto taxes yet as we're one of the friendliest. And our taxes are just based on realized income only like conversion from crypto to fiat. I don't want this to happen to my country one day. We're already fine with what the government is taxing us normally based on realized income only.

Impossible if government get taxes with 30% and how much profit have to earn in daily trading if government get much taxes, just have planning by government with adopted bitcoin and will got taxes about 30%. Still not final decision for Indian government will allowed with 30% or not. If really apply with 30% sure all Indian cryptocurrency member move their money and convert early before withdrawing to local exchange market, not good thing if have to pay 30% taxes and looks as crazy planning from Indian government.

virasog

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Quote from: KennyR on March 26, 2022, 01:32:27 PM

This is an expected one, because the ruling government have never participated in any of the interview to give their clear view on cryptocurrency usage. Once bill is passed in the parliament, they won't think of common public. The opposition party requested clarity on the law. For this, finance minister have an explanation stating we're into discussion and the plan is whether to continue if or not.

Has india ever made the crypto legal ? Yes they proposed the 30$ tax on crypto but it was just a proposal. I am not sure how the Indian government will be able to get this 1% tax on all crypto transactions. You cannot just collect taxes if you haven't made the bitcoin legal in the country.
I think India wants to ban crypto but they have seen china and others that banning won't help, so they are using these tactics to create fear among the crypto investors and traders.

worle1bm

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Not too much surprised by this because what the government wants is to maximize their revenues through these crypto regulations no matter how much pressure it would put on the investors in India.There have been significant rise in crypto industry in India due to which the government has taken advantage of this to add 30% taxation but now this extra over each transaction clearly shows they only care about their reserves increasing with it.They have not explored the blockchain and without any proper expertise have implemented this taxation system which is not at all good move by them.

fuguebtc

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Quote from: Gyfts on March 26, 2022, 02:59:50 PM

Quote from: cheezcarls on March 26, 2022, 12:57:57 PM

What are your opinions on this one guys regarding the double taxes imposed by the Indian government to their crypto citizens? Thanks!

This shouldn't come as a surprise. Bitcoin can't undergo a traditional ban because of the difficulty to enforce. A ban would be nothing more than a gesture. Instead, India would rather allow Bitcoin to be legal and milk it for tax revenue. The dual purpose is generating more funds for the government to misuse and to incentivize people to avoid crypto usage/investments.

I also think the Indian government is applying the double tax to force people to voluntarily give up the use of cryptocurrencies than if they were to issue bans it wouldn't work. But this is also not easy to enforce, investors in India will find ways to evade taxes and the government will lose tax money from crypto.

Jawhead999

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As we know government always opposite with Bitcoin and how ridiculous the centralized entity controlling anything what they want, people need to learn Bitcoin and shift to fully decentralization nature.

Don't use centralized exchange, don't use local exchange, instead use decentralized exchange e.g. bisq, hodlhodl, localcryptos. Even decentralized exchanges isn't good for trading, but at least you can evade their ridiculous laws. Indian income tax aren't really high [1] seems like they treat anyone who have Bitcoin is a billionaire.

[1] https://www.iciciprulife.com/insurance-library/income-tax/income-tax-slabs-rate-deductions.html

Poker Player

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Quote from: cheezcarls on March 26, 2022, 12:57:57 PM

So not one, but two taxes that will be imposed starting next week. This is definitely bad (or shall I say worse) for the Indian crypto community. 1% for every transaction? What is the government thinking about this?

It'll create a heavy burden in the hard earned money of the Indian crypto community. As the title says "This will kill crypto"

I don’t think that will crypto but it will definitely affect it.

What I also believe is that these types of measures will turn out worse than expected. When you raise taxes a lot, you end up collecting less than you expected, because people basically do not allow themselves to be robbed happily. People will probably switch to undeclared trading, using DEX and vpn, for example.

By the way, after reading the news I see that there is another important point:

“…losses cannot be offset against other taxes.”

In short, they are too greedy, and this legislation will have to be changed at some point in the future.

Darker45

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With regulations come taxes. That's expected. People would hope and demand that Bitcoin be declared legal. That's to be granted through a law or an order. Oftentimes, such policies will come with tax impositions. That would be a bittersweet compromise, but that's probably a good thing in general. The more important aspect is that Bitcoin is now made legal. The tax rate could later be negotiated for possible reduction.

cheezcarls

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Quote

Why so emotional about this?

I'm not from India, but imagine if this is also implemented in the country I lived in. The 1% transaction is definitely painful. Double tax is too much. For now, my country doesn't have crypto taxes yet as we're one of the friendliest. And our taxes are just based on realized income only like conversion from crypto to fiat. I don't want this to happen to my country one day. We're already fine with what the government is taxing us normally based on realized income only.

Dave1

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Quote from: BIT-BENDER on March 26, 2022, 04:34:02 PM

I am not surprised about this, the Indian government hasn't been friendly with crypto-currency, and I believe they are doing everything possible to continue to frustrate the Crypto-currency community.

What the Crypto-currency community needs is more decentralization, I am really not impressed with the way the Crypto-currency Exchanges and many others are going centralized.

Regardless though, what will the government accomplished by being harsh on crypto when everyone around them are trying to be crypto friendly? Their government is going backward with this kind of attitude.

It could frustrate our Indian crypto community, but we all know that some of them are going to continue with caution, regardless of their government being anti-crypto.

Yogee

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Quote from: cheezcarls on March 26, 2022, 12:57:57 PM

... But for this one.....argggh!!!!

Why so emotional about this?

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So not one, but two taxes that will be imposed starting next week. This is definitely bad (or shall I say worse) for the Indian crypto community. 1% for every transaction? What is the government thinking about this?

The Indian Government has been very clear about this form the start. The 1% TDS or Tax Deducted at Source was also introduced together with the 30% Capital Gains Tax. Why make a fuss about it now?

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It'll create a heavy burden in the hard earned money of the Indian crypto community. As the title says "This will kill crypto" and expecting that the trading volume in India will experience a sharp decline after this comes into full effect.

People are sometimes too dramatic whenever they hear about taxes. Indian crypto traders have made gains in the past without paying taxes and I doubt they will stop now because they do not want to share part of the gains to the Government. There are ways to minimize taxes legally like holding on to your BTC longer than you used to before selling.

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What are your opinions on this one guys regarding the double taxes imposed by the Indian government to their crypto citizens? Thanks!

Tax or ban? You choose.

Topic: This is going to be bad for the Indian Bitcoin community - page 3. (Read 675 times)