Bitcoin Forum

I know that official regulations by the government can help to legitimate crypto. However, in India they want to apply a 18% taxation, I think is too much, and investing can be demotivating.

https://cointelegraph.com/news/india-considers-taxing-cryptocurrency-at-18-as-intangible-property-reports

Would you feel more skeptical if you country apply such taxation as well? Or would you be happy because they legitimating crypto ?

Its good to hear that crypto will be legally in the country but taxes required is too high for the beginners what profit they can get for the taxes will they made

India is a corrupt country, I won't be surprise if they do that. Remember that one of a good feature of blockchain technology is about transparency and you don't expect a corrupt  official to agree with this new technology. They will use all their power and their connections to limit the use of crypto.

Taxes are lifeline for any country without which some country survives.  But rates of taxes should be genuine.  Lower rates of taxes are welcome step.

IMO, this is a good news more than a bad news. India imposing tax on crypto is better than banning crypto all together. The income tax in India seems to be at 20% for middle class which is higher than 18%, so it seems reasonable.


Income tax reference from the website:
https://www.hdfclife.com/insurance-knowledge-centre/tax-saving-insurance/latest-income-tax-slab-and-deductions-fy-2017-18

I think you are acting stupid, 18% GST  on crypto currency simply shows government has no understanding about it.
Do you impose sales tax,GST on share market trading?

They just want a cash grab.

Corruption and taxation are two different things.  Applying taxes does not mean that the country applying taxes is corrupt.  All the countries charge taxes because their and several administrative as well as defence and social responsibilities of the governemtns; for which money is required.  And the source of income for governments is taxes. 
But the rate of taxation should be justified.  Rate of taxation must be @ low rates.  Taxes should be just that ; by charging that amount the tax payer does not suffer huge losses and as a result of high taxation his survival must not be in danger. 
The king should charge tax from his citizens the amount so less as honey bee goes to flowers and sucks honey from flower but the survival of the flower is still not in danger.  This was the Indian culture which must be followed by the present governments to set high moral standards.

Dam already demotivated with that news. Lolz.

India is always prone to such changes when it gets out of their hands. However I dont really understand how they will decide the slot of taxation for the crypto currency investment and for the money which we earned from our real jobs. There could be mixing of professional taxes and crypto currency taxes and thus we may get to overpay the taxes.  :-[

Looks like perfect attempt to stop the crypto currency from the country as we will need to pay huge taxes. It doesn't seem to me a way to legalise the crypto currency but to remove it.

There's nothing wrong with a country having to pay taxes on crypto, in fact it's quite the opposite.
Adoption will lead to regulation = taxes, that's just how life works.
So in essence, this is a good thing.  People need to learn to see through the dollars and cents in some cases.

Regulation of bitcoin in India will be the good news for the people their.Regulation will increase the investors in India.But the tax will be very huge for the beginner.
Previously they will get the entire crypto profit to their account.But now,they have to pay 18% of profit to the government.

I think this is good news, which shows that the government of India has recognized the legal status of encryption, and that the personal income tax in India is very high. It is reasonable to levy 18% of the tax on bitcoin in this country.

the tax is on the profit, not on the whole cashout sum of BTC/Rupee I guess. Still bad. 18% is a big incentive to cheat the system by cashing out outside of india.

and tried and tried and tried to fight bitcoin, spread FUD about it, talk about banning it, even closing exchanges and all their attempts failed one after another because people wanted to continue using bitcoin and each time the government pushed back, people invested more in bitcoin!
now that they have seen they can not do anything about it, they plan on making the best out of this situation by making some money out of it at least. hence the high tax.

I think that taxes is way to much high even you are rich people cant afford to give that huge amount of taxes and all you profit will surely goes to the governments and wont help your people anymore it only harm your people.

what exactly are they going to tax ?!

https://www.youtube.com/watch?v=C_zeEEjf9_Q

This may be good news and bad news, I think it's too high and not all bitcoiner in India can pay this high cost tax. For big Investors maybe this is a small thing but for beginners this will only burden them.

The high tax application in a country that says it's forbidden to use bitcoin to be natural because the government in the country besides wanting to get more profit from the holders and bitcoin investors they also want to give the trust and convenience for bitcoin users with high tax cost to avoid any risks that will be experienced by its users. It also gives a signal that in addition to high taxation the bitcoin price will increase to cover the high tax costs.

I do not think that 18 percent of taxation on income in the crypto currency is very large. France recently lowered the tax from 49 percent to 13. This was indeed a high tax. In Japan, at about this percentage, taxation also starts and, depending on the taxable person, also reaches about 49 percent. Therefore, such a taxation can not be called large and exorbitant.
Specificity of taxation in India is that it is introduced from July 1, when the Reserve Bank's instruction to other banks not to carry out any operations in the crypto-currency will be introduced simultaneously.

the benefits of bitcoin in the presence of the tax, bitcoin can be legalized in that country, and sometimes protected. because bitcoin has taxed the country. that's the advantage of bitcoin with taxes in countries that legalize bitcoin.

I think the tax is too big, I think the country will get rich first because of the tax crypto is the country of India. just imagine every day the transactions made in India how many millions of dollars multiplied by 18 percent taxes, that's really a pantastic figure.
there are only a few questions about legalizing crypto in india.
1. crypto is legal in india, even taxed 18%. how about security in investing, is there insurance?
2. the tax payment itself whether per day, per month or per year?
3. if tax payment once a year, how to calculate it?

This is what I worry about when cryptocurrency becomes legal in a country, of course the government must take advantage of this momentum. it's good that cryptocurrency in a country becomes legal, in the sense that the government supports it, but I think if paying taxes with 18 percent value is really outrageous even in the news the Indian government does not mention about security in investing. tax 18 percent I think can not make sense.

Regulating crypto is indeed a good way to ensure security to it’s users. However, 18% tax is way to high. I think it is much better to have a certain percentage of tax to a different amount range.
In this way, those with small amount of crypto income would have smaller taxation.

18% for taxes is huge but it still isn't the biggest thing that i have seen. i believe the biggest one was 25% so far. in any case i think this is done to scare people from investing in bitcoin most of all because they have been fighting it pretty much all through last year as their people were making their exit through bitcoin disregarding all the shady things their government have been doing through banks.

It is true that taxes are normally issuing in the community in all countries but some of the government issued tax with a high cost which is really unreasonable for the most of tax payers. Even having tax is good because it is actually goes to governments activities by helping to have a better community. But all people are hoping that taxes will be always reasonable for everyone so nobody will disagree to this.

Taking into account the nature of bitcoin and how difficult it is to link a particular address or transaction to a person it is very unlikely that many people are going to cash out their bitcoins and be subject to that tax, after all why are you going to volunteer almost 1/5 of your profits to the government that did not took any risk in order to produce profits?

18% tax is included big in my opinion. If this is implemented then investment in crypto currency will decrease or the people will invest illegal crypto currency. In my opinion, the standard tax is less than 10%. If more than 10% then it is equivalent to prohibiting crypto currency in a subtle way. I can not understand why his government does not forbid it. I am very sorry for the people in their country.

people with such taxes will refuse to invest. and even worse, if they start looking for illegal ways, where you can invest money. In any case, in India there is now no means of regulation, so that everything functions like a clock. That's why it's strange to hear about so high taxation

I think that the tax is too big, if they really want to give taxes to the users of crypto, I think the government should be wiser again in calculating the value, think how the fate of the crypto traders with a capital that is not large, with taxes high enough then their profits will be sufficiently reduced so that will be little that they will get

I've always wondered - how do they know that you conduct transactions with cryptocurrencies? Even in the United States it is not everywhere able to realize what to say about India... And how can you demand payment of taxes without having transparent cryptocurrency legislation?

I would think of it as a step before the regulation of bitcoin as money. It's necessary for authorities to understand and test it first, 18% tax is bit cruel but it will do the job

either regulating it, or taxing it, no between but taxing is lil weird to me.

That looks like an attempt to keep people away from the crypto currency. I am not sure why the hell India is putting such taxes on the virtual currency after they see that there are already bad economic conditions in their country. They should be more careful about these things as at least with he online bitcoin trade some more money is coming to their nation. As far as I have India stands among those country where the crypto currency is use has increased heavily recently. And it was so much last year that this year RBI declared it as illegal tender within the country and people are subject to their own risks.

Anyway who cares, the implementation of such things in India might take a long time.

I think that tax rates is too high. But the good news from it is cryptocurrency activities will become legal and government issuing regulation on the crypto trade. I think that tax rate should be reduce and investor will more comfort to trade crypto

Taxes are important for the sustainability of state development but tax rates that are too high will only burden the public, especially for bitcoin users whose income is uncertain would be difficult for them to share between profits, daily needs, and tax rates.

I think it's certainly good news. The government of India is better than bribing cryptoos by imposing tax on cryptos. The minimum income tax in India is more than 18%, which can be 20% for the middle-class country. So I think this type of tax is reasonable for the middle-class country. This type of tax would be suitable for all Indian states.

Taxing crypto is better than banning it. However, in India a lot of the regular trading for every day goods in done in the street markets where people avoid tax. I don't think crypto will be different, people will still trade and don't bother with tax

That is a bad step by your government that they are imposing that much tax on bitcoin. I do not think that in that step they are in the favor of bitcoin but your government just want to get a huge amount of money from the users of bitcoin. If they like the use of bitcoin for their state then they also have to know that bitcoin is much more beneficial for any state and they have to make the adoption much easier with no tax or lowest tax.

You will be surprised by the thinking of the governments for most of us such a tax is simply too big but for many governments that is a low tax, there are many countries that charge more than half of your income in taxes, so I will not be surprised that in the future instead of getting a lower percentage in taxes charged we will get higher taxes in the future.

Well we don't know if people of India will be against because for me its a steep price to pay for having bitcoin or crypto in your wallet. Maybe there are more casuals bitcoin enthusiast in India and for them this is really a high price to pay. However, if we are going to compare it to let say Russia's crypto Rubble, which I heard was around 20%-30%, damn that was like the largest bracket you have to pay for a monthly Income Tax here in my country. I guess its really the part of the bargain that we have to deal right now, face high taxes and regulations, or completely ban it.