India proposes 30% tax on crypto and NFTs income

[uneng]

What?

This is the most absurd regulation proposal made by a government towards cryptocurrency so far. It's even more absurd than completely banning it as it was presupposed before. I guess in a situation where the investor loses money with crypto and NFT the government is also going to pick the loss in solidarity, compensating 30% of the lost amount back to the investor, right?

Such lunatic concept would only make sense this way...

[tyz]

It's really ridiculous fee was proposed by India, 30% is really high if they charge any income made from crypto and NFTs. The thing is you're not only pay income tax fees if you've made profit from crypto, you need to pay fees conversion fiat to crypto, trading fees, and withdrawal fees. Also not all people who bought crypto and NFT will made profit, while government doesn't know crypto and they will enjoyed the profit (tax) when someone made profit from crypto.

That's not a small amount of taxes, but at least it's a better solution than a ban on cryptocurrencies, which India was considering at one point not long ago. Compared to other countries, the taxes are still moderate. In Germany, for example, one pays up to 45% for income (independent from regular income or crypto income).

[onecall123]

The Indian government announced Tuesday that it would begin taxing income from digital assets. This is a positive step for crypto adoption, but a 30% tax rate is wrong. It will either drive big investors to the stock market or force them to leave the country. Small investors may or may not invest. 30% is huge, even government employment doesn't pay that much. Until it becomes a law, it is still a proposal. We have until the 1st of April 2022 to accomplish this.

According to my calculations, 30% of 1,000USD equals $300. That should definitely be the profit portion, right?

[Pik2]

30% seems like so much!

is that just on profit or everything like if I but 1k of crypto make 1.1k off it will i get taxed on 100$ or 1.1k?

[DanWalker]

30% tax, ohh my god! If I have to give 30% of my earnings then why do I have to do business with cryptocurrency? Private jobs are far better than that.
Can anyone please tell me that, will that government also take the responsibility of 30% loss if anyone loses his funds for the volatility reason??  

If they deny taking the responsibility of losing money when the market is dumped then why do they want to charge such a high fee, I can't understand.
30% tax is totally insane decision, in my opinion, Indian people should have to strike against such a decision.

[dothebeats]

I guess let them stick to bans then. 30% is simply unacceptable, and you will just see that your earnings will go to waste on projects that are not really helping, and your government is plague with corrupt officials that doesn't do anything except rob the public off their money.

Perhaps people from India can lobby for a somewhat acceptable rate. A rate that people can work with and be okay with while still supporting the government's projects.

[TribalBob]

why 30% isn't that too high, for 1 tax
because in my opinion not all owners/ crypto sellers have big assets like big whales,
the taxation of crypto should be reviewed

[Saisher]

Highlights on Virtual Digital Assets Taxation

• India to launch digital rupee by next year(This is into discussion long back itself and some trails were going on with the country's CBDC)
• 30% tax on income from transfer of virtual digital assets such as cryptocurrencies and NFTs(This looks to be very high and no proper statement is revealed on the legality of cryptocurrency)
• 1% tax deduction at source on payments made related to purchase of virtual assets(Users who have already part of the centralized exchanges will suffer)
• No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of acquisition. Loss from transfer of digital asset cannot be set off against any other income
• Gift of virtual digital asset is also proposed to be taxed at the hand of the recipient(One way or the other through heavy taxation government try to have control over the market)

This is crazy, tax is a way to kill Cryptocurrency and to discourage people from investing in Cryptocurrency, if I am living in India I will not trade in a centralized exchange and will opt to Decentralized exchange or do peer to peer, India has a large population of Crypto investors not to mention companies which deal with Cryptocurrency imagine the huge profit and revenues by the India government coming from traders everything is in favor of India's government as if they hate everything about Cryptocurrency.

[Vaskiy]

Reserve Bank of India has said cryptocurrencies a threat to India's macroeconomic financial stability. In his meet he has mentioned that cryptocurrencies doesn't have any underlying value as they aren't backed by any asset. Not even a tulip.

Through the heavy taxation India has shut the immediate ban on cryptocurrencies. The same stories of money laundering, consumer protection from the investment, usage on illegal activities have been said. He also said it is the investors own risk to invest on cryptocurrencies. Useless people, cryptocurrency or other forms of investments risk is for the investors. His statements is just like another wake up call to the government for a ban.

Source : cryptocurrencies a threat to India's macroeconomic financial stability

[lvsca]

The good news is that India supports the growth of cryptocurrencies in their country. Well, that's a huge tax expense, but I'm sure to push bitcoin prices up a bit, maybe this news actually makes altcoins and bitcoin prices continue to rise recently.

[Victorik]

If this is true, then the fees is ridiculously too high. What are they trying to achieve with this? Are they trying to discourage cryptocurrency by imposing such fees?
Anyway, I hope this isn't true. If they want such money, then they should invest in cryptocurrency themselves, not try to rip off those doing it.

[asus09]

I am sadly not surprised to see this news and I appreciate you for sharing it. This is of course nothing new for India to do. The VAT/ import taxes India already requires is crazy so this nothing surprising in that sense. I’m curious if they plan on charging the same amount for the digital rupee they plan on creating, or will they give that a lesser tax ?

I am also not at all surprised by this news, because we know all of this has been well designed by the Indian state, at first they proposed to ban bitcoin mining in their country, but after the proposal did not work, now they are planning to increase taxes. 30% to crypto currency, but the government's proposal was not accepted by their own citizens, there are about 23,975 of their citizens who have signed a petition with the aim of asking the government to implement a fair and reasonable tax policy...

[Dr.Osh]

it is a very high tax. 30% of the income earned is an extraordinary thing. even though they re-legalized this, they should think about it again, because people are also looking for money in crypto with various risks. well, it's just that, it's a bit of a breath of fresh air for crypto users there. i hope the indian government reduces the taxes given by people who make money from crypto.

[Vaskiy]

This meme is getting circulated around the social media platforms after the heavy taxation from finance minister during the budget session. She has said something really funny, that taxation of cryptocurrency doesn't mean crypto usage is legalized.

[zonefloor]

What kind of taxation is this? It doesn't make sense. Ok, getting tax is the most natural right of a state. However, it is necessary to protect the rights of citizens while collecting these taxes. Because nobody collects money from the street and nobody wants to pay such a high tax. Honestly, I don't think anyone would do this legally. Such heavy taxes will only push people to illegal ways. I hope they give up on their mistakes quickly.

[Vaskiy]

• 30% tax on capital gains proposed as Crypto Tax Legislation Becomes Crypto Law today
• India’s crypto taxation law will now take effect on April 1.
• The government has not accepted any suggestions of the crypto industry to tone down the crypto taxation
• The opposition members reacted strongly to the bill, calling out the lack of clarity in defining crypto in the bill
• The finance minister said, we have been very clear that consultations are going on as to whether we want to regulate it to some extent or really very much or totally ban it.

Source : CryptoTax Legislation Becomes Law

[kojektea]

I think this will cause bigger problems, I agree if the tax is a sign of the legality of a country.
But the problem is the tax paid in cryptocurrency will be difficult to estimate, even if it is paid, how to make it real money? definitely not the same price.
The second problem is high tax fees, I believe NFT is filled with cryptocurrency communities where they really like cheap goods to resell at high prices in the future, If the tax is determined in every transaction, then it will make NFT very expensive and possibly no one bought it.

[Vaskiy]

Indian government to make set of guidelines before the start of July. Government have requested the Central Board of Direct Taxes to do it. It is said that any and every product evolved out of technological innovation to be Virtual Digital Asset. How this gets to be right ?
Nothing seems to get changed

• The government is unlikely to reduce the TDS which is 1%
• 30% capital gains tax is also unlikely to be reduced.
• No exemptions planned other than for hospitals using blockchain technology.
• Presenting digital assets as gift have increased, and government is to tax on the gains out of gifts.
• No timeline for the regulation of cryptocurrency.

[wheelz1200]

Pretty harsh if the tax is just on the transfer.  Short term profits in the states can lead to 40% on the profits.  Anything after 12 months is much lower.  Is the 30% on the principal or the net profit?

[shinratensei_]

This indian government just wanna rob people's asset but they can't do that directly and they were starting to put very high tax to the crypto users. They were robbing the indian users. Why don't they even put 100% tax. that was a non sense tax for the crypto users. that looks so stupid. They just want to rob their civilians. I meant that's not mean if crypto legal but putting very big tax to the crypto. This is what i have called that shady government.