Topic: Your opinion on bitcoin holder tax from Indian government Income Tax - page 2. (Read 254 times)

If I'm not earning good from trading bitcoin, this regulation from indian government isnt fair and our financial freedom will really suffer because we all knew corruption will probably step in. Income will supposedly be done with fiat currency, and has nothing to do with bitcoin in the first place due to its not part of the economy as it's a decentralized asset.
Life gets harder if government will took over on this matter, hopefully this country will soon realize what they're doing to their fellow country men.

The great Benjamin Franklin said : in this world, nothing is certain except death and taxes. And he said this after basically having participated in the creation of a country (the USA) in revolt over taxes !

30% isn't that bad.

Most governments will always have ways to find out on which or from they will get their financial resources.  In my country even though celebrities who have no fixed income and hard to identify the exact figure of their profits our government are still able to identify the amount of tax that they should be paying, I think it didn't bring any chaos to our tax system, should anyone won't pay their tax then that is the time that their life will be in chaos, IMO  .

Seriously, if this will be implemented in India I'm pretty sure that their government has a reason maybe not just for tax revenue but also they are trying to have control over their activity and as to each crypto-assets of their citizens.  Even though ain't come from India but I can compare here in my country either income or capital gain profits are subjected to tax as long as it reaches the taxable range then the government will take their part from it, the same goes to India as well.  Probably this implementation has a good purpose.

They did? I still heard they are struggling to get into crypto.
But yes that is makes sense, like if you want bitcoin legal in our place so please obey the rules and your holding will get taxed.
This is ridiculous , is it even possible to detect all of those bitcoinholders in india?
This kind of tax is complicated , requires some deep research and right formula , otherwise the tax will get randomly punished to bitcoin holder there, which it is unfair.

30% mean more than 1/4 and this is not a logic amount at all...its better to ban all cryprocurrencies better than do such  a dictatorial thing...a task like this mean the total oposite of what crypto users really want

India has suffered from the pandemic and many have lost their jobs and many economic sectors have been destroyed, so you will not find much tougher laws or at least they will not impose such taxes.

I remember some time ago that there were some taxes on cryptocurrencies and many of these laws require converting BTC into paper money but categorizing bitcoin as assets.

Sad to say for the indian people that they are need to pay taxes for the holder or investing to the bitcoin and I hope in my country it will not happen because we earn only little and they want us to pay taxes. I do not know how they  identify who indian people are having bitcoin and how the taxes works. Hoping also because they implement tax to the bitcoin it's better for then to accept and promote bitcoin

Bitcoin in India is taxed under long term capital gains. Which actually taxes it around 30% gains if the source is to be followed. One have to remember that it's something that is not made by the government, nor does the government do anything to make it more beneficial, more profitable , to make it better, therefore asking taxes for Bitcoins is in a way : ridiculous BUT then again they are asking for 30%!!!!! This is in no way fair.
Let me put out a statement:
The government of India have not yet made cryptocurrencies like bitcoins legal , the banks are deliberately blocking the accounts of people engaged in cryptocurrencies , after every 2-3 months the government releases statement like : How you can be imprisoned for 10 years if you use bitcoins, how the government is trying to launch digital rupee that they think is a worthy competition for bitcoins !(lol) BUT NO ! YOU GOTTA PAY TAXES , that too 30% of your gains.
Just tell me how superficial, how horrible this is... They just need money 💰 and about the Corruption we all know a lot already.

It doesn't matter. As per income tax act in India, you have to pay taxes on all types of incomes - legality doesn't matter. Even if you are engaged in drug selling business and get caught, you are still required to pay taxes on your income first and then you are proceeded with criminal trial. I was searching for the exact lines from my old tax books and finally found it:

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Actually it won't lead to chaos. Income Tax Act is very flexible in regards to traders. If you are doing large number of trades, shifting between coins every now and then, then there is a provision of 'speculative business' in the Act. You don't have to calculate exact amounts of profits, just take the total of all sales value and all purchase value, deduct the total of sales from the total of purchases and the net amount is your speculative profit if it's positive.

Note: Only short-term buy/sell transactions can be considered for speculative business. If you are holding coins for over 3 years then you can't mix those with speculative business and have to pay Capital Gains on the profits of those coins separately.

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Actually article is slightly misleading. No one is saying cryptocurrencies are going to be taxed @ 30%. Cryptocurrencies so far and I expect in future are be considered as any normal trading instrument. So if you are holding it for more than 3 years and then sell, the tax rate is 20% (20.8% with cess). If you sell it within 3 years, the tax rate depends upon the total income you earned. The lowest tax slab is 5% (5.2% with cess) to the highest of 30% (31.2% with cess).

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PS: If anyone wanna read in-detail thread about taxation of cryptocurrencies in India as per current situation: https://bitcointalksearch.org/topic/guide-how-bitcoin-and-cryptocurrencies-are-taxed-in-india-5206607

I agree with your few things but not with all because Indian economy is not bad its one of fifth in world but system is not good most of government officals need bribary and kickbox which hurting very badly and can do some good things but due to some geographical problems and local system they faced some serious issues they have strong democracy but not strong and good enough system which support this all now recently some religion issue is also hurting very badly due to current ruling party.

India is a country that is very difficult to provide any freedom, especially with regard to taxation. considering India's economy is so bad, the impact is that the government is targeting bitcoin users. as long as the tax provided is not too burdensome for bitcoin users.
Apart from India, there are still countries that impose these tax regulations. but as of now, I still haven't heard any complaints from those who are taxed from bitcoin.

I would say it's a good and necessary step! Because bitcoin doesn't have a legal definition in India and this step from income tax department may help in getting that legal things done for our betterment. At the end of the day, government wants revenue. So if Indian government sees that the tax income from cryptocurrencies is good enough, there may be a possibility of a positive policy around cryptos.

Right now, the legality around crypto doesn't exist in India. This may help to fast-track that most awaited legal matters for us!

Oh, it sounds not very positively. And it is a pity, but there is such a tendency mostly in lots of countries that we can see nowadays. For example in my coutry the draft legislation not so long ago appeared and it has been voted even - the main question of it is something like in your country, connected with crypto and taxes.. So nowadays we keep our fingers on the pulse and are waiting what the result for crypto traders and holders will be.  

It is depend how large percentage they are asking for tax. It's ok to have tax if that the only way to make it legal but asking for too much for those who also looking to earn money using investment in crypto currency for me is too much.they may even reduce their desire to invest in bitcoin if they continue to collect large taxes to even newly investors that only want it to try.

This is probably the reason why they lift the ban in Bitcoin, so that instead of stopping Bitcoin from overtaking them, they are just going to milk the poor investors so that they either stop using cryptocurrencies, hide from the authority, or comply with that absurd tax.

But hey look at the bright side. At least one more country supports cryptocurrencies now. Who knows, maybe 30% might not come true at all since people are just anticipating it anyway.

It's absolutely ridiculous to tax people on their profits out of bitcoin investment and how can they do it as it stalemate sort of think for crypto in India wherein nether they have termed it legal nor illegal, even if they want to tax then on what basis they are going to decide the tax amount as investors might not just store his fund idle, whether profit or loss the user will keep reading or shifting to different coins wherein they cannot accurately decide a taxable figure and this will lead to chaos.

Fair or not, it is the reality. A number of nations are going down this route and imposing taxes on bitcoins whether capital gains or as income earned from trading. Although I would assume Bitcoin holders would favour countries which are more receptive and generally tax free over those which aren't.
I made a thread which container nations which are tax free;
Some of the nations on the list has a caveat; *Germany for example doesn't tax gains on Bitcoin only held beyond 1 year.

If someone's earning money the government will have to come see take their part of it. This is how they regulate things even when BTC isn't legal nor banned, they still consider to take tax.  And 30% tax on cryptocurrency gains is a bitch.  I'm curious if they are going to take tax from investors who are not cashouting?

I hope most of you already known about this matter that Indian government wants income tax from bitcoin holder. Its means now indian income tax authority charge tax from all bitcoin or altcoin holder. If you have to work on crypto from india you have to pay tax.

Now what do you think is it fair or not? Is others irregulated country make crypto legal by also taking tax.what do you is this possible? 

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