Pay your 30% tax or you will be forced to pay 70% as penalty!

[Bitcoin Smith]

The new amendment act will impose 70% on tax penalty for any unreported crypto gains and this announcement reported on cointelegraph and other popular crypto media soon after the Union budget 2025.

India will impose tax penalties of up to 70% on undisclosed crypto gains as part of new regulations under Section 158B of the Income Tax Act. Cryptocurrencies will be included under Section 158B of the Income Tax Act, which reports undisclosed income, according to Indian Finance Minister Nirmala Sitharaman’s Union Budget 2025 announcement.

The amendment allows cryptocurrency gains to be subject to block assessments if not reported, placing them under the same tax treatment as traditional assets like money, jewelry and bullion.

Indian crypto holders face 70% tax penalty on undisclosed gains

Also tax department is demanding the unpaid GST of 800 crore from the crypto exchanges including Binance for the year 2024.

So anyone who used the KYCed exchanges for trading crypto should report their gains as soon as possible to get rid of the penalty notice from IT.

[hugeblack]

In other words, it is a soft ban and may push many to either stay away from KYC or HODLing bitcoin, which may be a good option for those who do not want to sell bitcoin at the moment. 30% does not seem like a reasonable amount, if the tax was 10% or 20% then it would be possible to pay it compared to penalties of up to 70%.

[Bitcoin Smith]

In other words, it is a soft ban and may push many to either stay away from KYC or HODLing bitcoin, which may be a good option for those who do not want to sell bitcoin at the moment. 30% does not seem like a reasonable amount, if the tax was 10% or 20% then it would be possible to pay it compared to penalties of up to 70%.

Not only 30% gains but also there's 1% TDS which almost ended crypto trading as an option of making money for us, TDS is nothing but tax deducted at source whether it's crypto to crypto or crypto to fiat where 1% of traded amount will be deducted effectively from the exchange itself to put into this picture if someone do a trade with $100 and they completed 10 trades now their capital will shrink to $90 (approx) so yeah government doesn't want their people to use crypto but also not interested in banning completely since govt like US regulated it so they are just following on that path while juicing their people.

[avikz]

So Indian government is showing the fact that they do not want crypto to flourish in India. That's why it is being so heavily taxed. I am sure the banking lobby is constantly influencing the finance ministry against cryptos.

It's unfortunate to see that anti-progressive stance of Indian government. It makes total sense for wealthy people and best brains to permanently move out of India and settle abroad.

[Bitcoin Smith]

So Indian government is showing the fact that they do not want crypto to flourish in India. That's why it is being so heavily taxed. I am sure the banking lobby is constantly influencing the finance ministry against cryptos.

It's unfortunate to see that anti-progressive stance of Indian government. It makes total sense for wealthy people and best brains to permanently move out of India and settle abroad.

Our FM minister won't hesitate to do anything as long as it increases their tax revenue. But it will just backfires at them for sure because it's proven that restricting crypto is not possible so higher the tax the people will move towards unregulated or anonymous marketplaces and will just continue their trading activities so the loss is just for the government. What these politicians failed to understand is decreasing the tax rate will attract more people so their tax revenue will be much higher if they have 15% instead of 30% because I am sure the market is big enough to quadruple if the tax reduced.

[TheUltraElite]

In other words, it is a soft ban and may push many to either stay away from KYC or HODLing bitcoin, which may be a good option for those who do not want to sell bitcoin at the moment. 30% does not seem like a reasonable amount, if the tax was 10% or 20% then it would be possible to pay it compared to penalties of up to 70%.

It has been 30% for a few years now. The government here likes to go backwards in civilization and hence they dont want people to invest or make money from crypto and also attempt to squash any startups that are trying to build crypto exchanges here.

This situation will not improve unless the Western countries try to influence the idiotic politicians here to change their policies.

[Bitcoin Smith]

In other words, it is a soft ban and may push many to either stay away from KYC or HODLing bitcoin, which may be a good option for those who do not want to sell bitcoin at the moment. 30% does not seem like a reasonable amount, if the tax was 10% or 20% then it would be possible to pay it compared to penalties of up to 70%.

It has been 30% for a few years now. The government here likes to go backwards in civilization and hence they dont want people to invest or make money from crypto and also attempt to squash any startups that are trying to build crypto exchanges here.

FM Nirmala Sitharaman on Crypto Regulation: Is India's Stance Shifting Due to U.S. Adoption?

India Today journalist asked about the chances of reducing 30% tax in the future since people are moving the offshore exchanges to bypass the tax and 1% TDS, look at her reply, we have the tax just to trace the transactions that is been used for unlawful activities and didn't answer anything about the high tax rate which shows how intellectual our finance minister is.

[pawanjain]

FM Nirmala Sitharaman on Crypto Regulation: Is India's Stance Shifting Due to U.S. Adoption?

India Today journalist asked about the chances of reducing 30% tax in the future since people are moving the offshore exchanges to bypass the tax and 1% TDS, look at her reply, we have the tax just to trace the transactions that is been used for unlawful activities and didn't answer anything about the high tax rate which shows how intellectual our finance minister is.

The 1% TDS rule is surely a pain in the ass but if you yearly income is within the tax exemption limit then you will be getting this TDS back upon filing ITR.
The negative impact is that it shrinks the capital as you say and the amount is locked untile filing ITR.
But otherwise, you get the money back and so the major concern should only be the 30% direct tax on crypto income.

The 70% penalty for undeclared crypto gains is another pain in the ass, sounds like having piles in the ass  
Why don't they declare a clear regulatory framework instead of bringing up such rules which pisses of the youth of India.

[kentrolla]

Such a sadistic government and its policies. They don't want people to lead a peaceful life and improve their standard of living and they don't want people to become rich, India was thriving in crypto market but since enforcement of 1% TDS and 30% capital gain tax it has forced people to stay away from crypto and crypto companies have gone bankrupt. They should just say they are against crypto and say they are applying a ban rather than killing it indirectly.