Your opinion on bitcoin holder tax from Indian government Income Tax

[pooya87]

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.

Banks doing unreasonable things such as closing their users account for buying bitcoin is not a new thing and is happening in the rest of the world too. It doesn't have anything to do with legality of bitcoin though. Also keep in mind that stupid people on the internet or stupid people in government suggesting stupid things doesn't make them law. Some idiot last year suggested 10 year prison and it was never even considered let alone become an actual law, as far as I can tell.

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[BTCappu]

So the article says that it might be around 30% tax, if that’s really it then they must be kidding me lol 30% tax on Bitcoin earnings? That’s a joke please. Well, I think for the government to tax you on Bitcoin depends on where that Bitcoin was invested in, if it’s a centralized exchange that you invested your Bitcoin, they will be getting the reports and monitor everything.

If you’re holding in a private wallet and sell with other means, how exactly are they going to know? They wouldn’t. Anyway,  nobody would want to get into trouble with the government, so they’d comply.

[Mike Mayor]

There is no tax to pay unless you sell it. If I earn 1 bitcoin how are they going to make me pay tax on that? I am not converting it to fiat and will make purchases in bitcoin. They will probably want you to do the following.

1 btc = $20000 and you pay 30% tax to $6000 tax. These clowns are saying you need to pay fiat tax on that 1 btc? >.< Hahaha How can I pay tax on something the people have given value to?

[MCobian]

In my opinion there is nothing wrong with the government imposing taxes on Bitcoin holders, because the government does require
income from taxes.The current economic situation is very worrying, because the pandemic has a major impact on the economy.
So the government needs taxes from Bitcoin to help restore the economy, what is wrong is the amount of tax imposed by the Indian
government of 30%. That's very big and can be burdensome for Bitcoin holders in India, the Indian government should only impose
a tax of 5%.

[dizzy1996]

Of course, in general, I think that tax collection is of course normal, given that cryptocurrency is recognized as a digital asset, but I accept a tax of a maximum of 5%, but no more, and what they do in India I consider a complete robbery, since the tax is too big for cryptocurrency holders and this will significantly slow down the legalization of cryptocurrency in this country, there will be many shadow options in order not to pay taxes, and so on

[Vishnu.Reang]

Of course, in general, I think that tax collection is of course normal, given that cryptocurrency is recognized as a digital asset, but I accept a tax of a maximum of 5%, but no more, and what they do in India I consider a complete robbery, since the tax is too big for cryptocurrency holders and this will significantly slow down the legalization of cryptocurrency in this country, there will be many shadow options in order not to pay taxes, and so on

LOL.. it is up to the government to decide the tax rates and there is nothing you can do about it. You can try tax evasion in case you don't want to pay your taxes, but then be ready to face the consequences. And I don't know whether there is any country out there, where the tax rates are as low as 5%. Normal range is 20% to 40% and it depends on the country where you reside.

[Gotumoot]

Of course, in general, I think that tax collection is of course normal, given that cryptocurrency is recognized as a digital asset, but I accept a tax of a maximum of 5%, but no more, and what they do in India I consider a complete robbery, since the tax is too big for cryptocurrency holders and this will significantly slow down the legalization of cryptocurrency in this country, there will be many shadow options in order not to pay taxes, and so on

LOL.. it is up to the government to decide the tax rates and there is nothing you can do about it. You can try tax evasion in case you don't want to pay your taxes, but then be ready to face the consequences. And I don't know whether there is any country out there, where the tax rates are as low as 5%. Normal range is 20% to 40% and it depends on the country where you reside.

I think that it is too much for the crypto earners in india just imagine if they are earning in trading they would already be paying transaction fee and withdrawal fee then they would also be paying their government tax.
What if they are only making a small profit then it would just be a waste for them might as well quit than to continue losing money because of all the fee and tax.

[Luzin]

30% is not a big of a problem for big bitcoin holders in India, but for small bitcoin holders surely it will be a problem. 30% may sound small for big players but for small holders that will be a pain to pay for sure.

I consider it big, maybe 5% -8% is reasonable. Neither the whales or not I thought would be heavy. 30% is a big thing, if you have 1 then 0.3 you have to give to the tax collector, the remaining 0.7 is like unfair. They need to do a review before this takes effect.

[Warkop]

In my opinion, if Bitcoin is legalized in a country, it is certain that the country will impose income tax from Bitcoin, because in state regulations if a company enters a country it will definitely be taxed, maybe they think the income in Bitcoin is very large. big so they made new regulations for Bitcoin taxation there I think it's very fair.

[Mike Mayor]

In my opinion there is nothing wrong with the government imposing taxes on Bitcoin holders, because the government does require
income from taxes.The current economic situation is very worrying, because the pandemic has a major impact on the economy.
So the government needs taxes from Bitcoin to help restore the economy, what is wrong is the amount of tax imposed by the Indian
government of 30%. That's very big and can be burdensome for Bitcoin holders in India, the Indian government should only impose
a tax of 5%.

Dude, you are aware that income tax can be up to +- 40%. I would love to only pay only 5% tax that sounds like a dream. The taxes from bitcoin will not help restore the economy. Not even the entire capital of all crypto will do much against the entire economy. Other economies are much bigger than crypto but that is not to say crypto isn't big, it is, just not as big as other fiat-driven enterprise/companies/services/stocks and the like.

Of course, in general, I think that tax collection is of course normal, given that cryptocurrency is recognized as a digital asset, but I accept a tax of a maximum of 5%, but no more, and what they do in India I consider a complete robbery, since the tax is too big for cryptocurrency holders and this will significantly slow down the legalization of cryptocurrency in this country, there will be many shadow options in order not to pay taxes, and so on

LOL.. it is up to the government to decide the tax rates and there is nothing you can do about it. You can try tax evasion in case you don't want to pay your taxes, but then be ready to face the consequences. And I don't know whether there is any country out there, where the tax rates are as low as 5%. Normal range is 20% to 40% and it depends on the country where you reside.

That's what I was thinking too. I think that guy lives in dreamland if he thinks he will only pay 5%. You pay more than 5% just in VAT. Different income brackets pay different taxes. If you earn less than a certain amount you don't pay tax. So if you slowly convert your crypto into fiat without going over the threshold you don't have to pay tax.

[cabron]

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.

Its good to be reminded that we also need to revolt 

The government will not collect tax as BTC but as rupees anyway. I think it will be fine because there is just no way of escaping from the government if you wanna live in a society that ask for your contribution. Not 30% though. Its like they only want to make crypto investors to suffer.

[pixie85]

There is no tax to pay unless you sell it. If I earn 1 bitcoin how are they going to make me pay tax on that? I am not converting it to fiat and will make purchases in bitcoin. They will probably want you to do the following.

1 btc = $20000 and you pay 30% tax to $6000 tax. These clowns are saying you need to pay fiat tax on that 1 btc? >.< Hahaha How can I pay tax on something the people have given value to?

The US government also wants you to sell and pay them in fiat. If you bought ETH and sold it for BTC and then that BTC pumped you got profit and should give them some of it even if it means selling.

I know this is stupid but if you don't agree with it you can always take your coins and move abroad.

30% is too much I would never pay that and would rather hide my coins or leave the country.

[Sithara007]

That's what I was thinking too. I think that guy lives in dreamland if he thinks he will only pay 5%. You pay more than 5% just in VAT. Different income brackets pay different taxes. If you earn less than a certain amount you don't pay tax. So if you slowly convert your crypto into fiat without going over the threshold you don't have to pay tax.

Very sensible post. A lot of the users here are living in dreamland and they don't want to face the reality. In real life, there is no option other than paying your taxes that are due. It is ridiculous to claim that 30% is too high and therefore only 5% should be paid. It is not up to the individual to decide his tax rate. If that was the case, then no one would be paying any taxes on their capital gains.

[oprahwindfury]

I have a question and that is Bitcoin is decentralized  so how can  the  government or the income tax officers trace the bitcoin holder and ask holder for tax?

[aesma]

I have a question and that is Bitcoin is decentralized  so how can  the  government or the income tax officers trace the bitcoin holder and ask holder for tax?

Well exchanges require KYC verifications, for starters. If you find a way to sell your coins in person, in cash, then they can't know. Unless they bait you and you sell to the police, that is ! But of course there just has been a big move against cash by the Indian government, so if you try to deposit a big amount at the bank, you will also have to explain how you got the money, and the government will know.

[Mike Mayor]

There is no tax to pay unless you sell it. If I earn 1 bitcoin how are they going to make me pay tax on that? I am not converting it to fiat and will make purchases in bitcoin. They will probably want you to do the following.

1 btc = $20000 and you pay 30% tax to $6000 tax. These clowns are saying you need to pay fiat tax on that 1 btc? >.< Hahaha How can I pay tax on something the people have given value to?

The US government also wants you to sell and pay them in fiat. If you bought ETH and sold it for BTC and then that BTC pumped you got profit and should give them some of it even if it means selling.

I know this is stupid but if you don't agree with it you can always take your coins and move abroad.

30% is too much I would never pay that and would rather hide my coins or leave the country.

Well I don't live in the US xD The government here isn't insane here. The people who own bitcoin are the same people who make the country work and being in most of the money anyway so It wouldn't be clever to piss them off. It's not stupid, I would move abroad if I stayed in the USA. 30% is too much. I was just thumb sucking a number out for example.

That's what I was thinking too. I think that guy lives in dreamland if he thinks he will only pay 5%. You pay more than 5% just in VAT. Different income brackets pay different taxes. If you earn less than a certain amount you don't pay tax. So if you slowly convert your crypto into fiat without going over the threshold you don't have to pay tax.

Very sensible post. A lot of the users here are living in dreamland and they don't want to face the reality. In real life, there is no option other than paying your taxes that are due. It is ridiculous to claim that 30% is too high and therefore only 5% should be paid. It is not up to the individual to decide his tax rate. If that was the case, then no one would be paying any taxes on their capital gains.

Thank you xD Yes exactly!! There are ways to reduce the amount you pay but you will still be paying something. If you sell bitcoin you must look at the price you bought it at and choose coins that you bought or were sent when the price is very close to the current one. For example, If you have bitcoins you bought in 2010 for $1 do not ell those. Rather sell the ones you were paid last month so the difference in price is much smaller. So you say bitcoin is $20 and you get paid $17 not you pay tax on $3k but ig you sell the bitcoin from 2010 you will pay almost $20000 of it in tax. Though it is difficult to tell exactly when to calculate income tax from sold bitcoins it should be fine as long as you declare something and pay a reasonable amount. No government should snoop around if you do that.

[posi]

This coming to their attention because of the profit cryptocurrency investors make while another business setting was depreciating during the season of lockdown but its still a fair decision since they are not against cryptocurrency and the tax was said to be pay from the profit made through Bitcoin investments or holder as the OP topic says.

[Ucy]

I guess that only affects people who use companies operating under the Country's authority/jurisdiction? If the taxes are high/unfair, people should probably use decentralized crypto platforms that are autonomous, or foreign platforms with fair taxes . I believe people should be free to do so.

[acener]

I am really against it but I don't fully understand how it would work so I guess I would still do some research about it to make it clear for me.
But I don't really like the idea of having tax for crypto earners because some of us could be considered as lower than a minimum wage earner.