India's confusing crypto bill

[kentrolla]

Recently India has passed a crypto bill to tax crypto income by 30% but at the same time claiming that taxing cryptos doesn't make them legal and states it's country's sovereign right to tax crypto and this atrocity doesn't stop here as they have mentioned that the decision about banning crypto or legalizing it will taken after further consultation.

Can they tax something which is not legal? How can a country tax something which is not legal? Moreover they still have plans of banning crypto since they are not clear about their stands on legalization. Not sure if it's an attempt to unofficially break the crypto market in India or what's going on.

Share your thoughts on this.

Source: https://www.businessinsider.in/cryptocurrency/news/taxing-cryptocurrencies-does-not-give-them-legal-status-clarifies-indias-finance-minister/articleshow/89500097.cms

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[teosanru]

Recently India has passed a crypto bill to tax crypto income by 30% but at the same time claiming that taxing cryptos doesn't make them legal and states it's country's sovereign right to tax crypto and this atrocity doesn't stop here as they have mentioned that the decision about banning crypto or legalizing it will taken after further consultation.

Can they tax something which is not legal? How can a country tax something which is not legal? Moreover they still have plans of banning crypto since they are not clear about their stands on legalization. Not sure if it's an attempt to unofficially break the crypto market in India or what's going on.

Share your thoughts on this.

Source: https://www.businessinsider.in/cryptocurrency/news/taxing-cryptocurrencies-does-not-give-them-legal-status-clarifies-indias-finance-minister/articleshow/89500097.cms

Yes, they have always been taxing what is not legal. Gambling they tax heavily and gambling is not legal within the territory of India but yet from the very start gambling income is taxed heavily in the country. Even though I don't agree with this sort of draconian law on crypto but still 30% tax is still bearable. What is not at all bearable is the hefty 1% TDS that will be levied on sale proceeds every time you will make a sale. This doesn't make any sense and is irrational and is a deliberate technique to stop crypto trading in India. What I see from here is that they might in the coming months ban the foreign exchanges altogether and then eventually ban cryptos. They think this way they might get rid of it in phased manner.

[The Cryptovator]

So if not legal yet, using cryptocurrency will consider a crime? It's like some countries have been taxing alcohol drinks but it's illegal I'm their country. India making drama form while. They just make things more complicated and encourage people to use cryptocurrency in the black market. Officially announced about Tax, but not yet finalized whether it's legal or illegal. It's just a ridiculous statement to me, not only confusing.

[milewilda]

Share your thoughts on this.

They would be always having that decisive point depending on whats up into their minds and ending up neither they would be legalizing it or totally bans it and its true
that they couldnt impose taxes on something which isnt even considered legal and you would really be boggling up your mind on whats happening which it isnt
really surprising that certain conditions could really give out  these kind of scenarios which it isnt really that surprising.They are the ones who do have
the final say on which path they would be taking on.

[DaveF]

The US has the same thing where if you have a source of illegal income you still have to pay taxes on it. Because if you do get caught, on top of everything else you get hit with tax penalties and possible criminal tax avoidance charges. There are other countries that behave the same way.

Laws and politicians may come and go, but the tax people always get their money.


-Dave

[CaVO32]

So if not legal yet, using cryptocurrency will consider a crime? It's like some countries have been taxing alcohol drinks but it's illegal I'm their country. India making drama form while. They just make things more complicated and encourage people to use cryptocurrency in the black market. Officially announced about Tax, but not yet finalized whether it's legal or illegal. It's just a ridiculous statement to me, not only confusing.

They couldn't make up their mind towards crypto. If they don't know the status of crypto in their country, how can they tax their citizens? Because if their citizens don't know if usage is legal or not, more than likely, their people will hide their crypto transactions from their government so how can they be taxed? India may have confusing stance towards crypto because, they want to get a hold of their crypto users by taxing them, and yet, they don't want to legalize the use of it yet. 

[7788bitcoin]

Can they tax something which is not legal? How can a country tax something which is not legal? Moreover they still have plans of banning crypto since they are not clear about their stands on legalization. Not sure if it's an attempt to unofficially break the crypto market in India or what's going on.

The legality of Bitcoin is discussed for a long time here in this forum and you could find many threads talking about the ban unban and many more theories about how India is going to deal with the entire cryptocurrency market. I am not sure about the volume of investors in the space from India but taxing them means it is legal in India and years long rumors of banning bitcoin and cryptocurrency are false.

If the government were planning to ban the entire market, i am sure they will not add them in the tax bracket.

[Smartvirus]

It's so funny when these guys get this confused on what step to take. This si so out of place on there side, abnormal or illegal taxing of cryptos. I'm having a thought here and

1. Its either they are test run how possible it would be to tax crypto facilities and crypto earners. In a way, they could see how much that could be generated from this activity or
2. They raised the quota so high so as to discourage those engaged in any crypto related activities.

In anyway, even if I am wrong, they are greatly confused with there stands, calling it illegal and yet taxing  it. If you ask me, that's what bribery feels like.

[n0ne]

It is like they're testing the emotions of the people. If someone have come out to protest, then this could've been made a big drama. Now the government is in a situation not to make any decision on it. Only for the reason it is being taxed heavily and hasn't given any statement on its legality. The government might've thought that people will confess and start paying taxes, but that isn't happening. The targeted revenue out of crypto taxation isn't possible, because people look for alternate ways to use it than paying such a big tax to have our own freedom on finance.

[DapanasFruit]

For many years now, the Indian government has had been holding the cryptocurrency industry - which is very much a booming industry in India - in great suspense as to how it will really treat it under its regulatory power. And we in the outside assumed that because it is about to tax crypto transactions and income it can mean that it is now signaling of its eventual legalization. So we are so wrong with this assumption because the two topics are essentially not related to each other as the country has a history of grabbing tax revenues from businesses they still considered to be illegal. Funny but if they can tax illicit distribution of harmful drugs maybe they will also do it. Anyway, we are still hoping that eventually the government can have a unified stand on this matter and there will be no ban whatsoever because they could have done it months ago...we know that they are really salivating of the tax they can get from cryptocurrency business.

[Lanatsa]

It is like they're testing the emotions of the people. If someone have come out to protest, then this could've been made a big drama. Now the government is in a situation not to make any decision on it. Only for the reason it is being taxed heavily and hasn't given any statement on its legality. The government might've thought that people will confess and start paying taxes, but that isn't happening. The targeted revenue out of crypto taxation isn't possible, because people look for alternate ways to use it than paying such a big tax to have our own freedom on finance.

Possible but I don't see that they are playing their citizens emotions but in regardless on what the situation there would be always those kind of reactions whatever decision they would be making
and its just normal that people would really be having that confusion in mind.

Whether they would be legalizing it so that they could tax on it or would totally get rid by banning it but of course they would be losing that taxation.So if their government
would really be spotting out on the probabilities in terms of benefits then we might be seeing some legalization.

[Jawhead999]

Well they're making the conditions become worse than previous, I don't see any reason why should Indian citizen using local exchanges (e.g. WazirX) instead of using decentralized exchanges to hide laws and tax avoidable. This is just like double standard, they don't allow their citizens to have crypto since it's illegal sources... but they do taxed the illegal sources to earn money. Until Bitcoin will be accepted or legal tendered in various citizens, we will see other country will unbanning Bitcoin.

[btc78]

Recently India has passed a crypto bill to tax crypto income by 30% but at the same time claiming that taxing cryptos doesn't make them legal and states it's country's sovereign right to tax crypto and this atrocity doesn't stop here as they have mentioned that the decision about banning crypto or legalizing it will taken after further consultation.

Can they tax something which is not legal? How can a country tax something which is not legal? Moreover they still have plans of banning crypto since they are not clear about their stands on legalization. Not sure if it's an attempt to unofficially break the crypto market in India or what's going on.

Share your thoughts on this.

Source: https://www.businessinsider.in/cryptocurrency/news/taxing-cryptocurrencies-does-not-give-them-legal-status-clarifies-indias-finance-minister/articleshow/89500097.cms

When will we be stopped tackling this damn country? for all my years here in crypto ..  India had been in the news here and there about their inconsistent stand in crypto currency.

I think we should stop mentioning this country until they find the right way in treating this currencies.

Now here they are putting confusing  Bill? are they playing around us here?

[noormcs5]

Recently India has passed a crypto bill to tax crypto income by 30% but at the same time claiming that taxing cryptos doesn't make them legal and states it's country's sovereign right to tax crypto and this atrocity doesn't stop here as they have mentioned that the decision about banning crypto or legalizing it will taken after further consultation.

Can they tax something which is not legal? How can a country tax something which is not legal? Moreover they still have plans of banning crypto since they are not clear about their stands on legalization. Not sure if it's an attempt to unofficially break the crypto market in India or what's going on.

Share your thoughts on this.

Source: https://www.businessinsider.in/cryptocurrency/news/taxing-cryptocurrencies-does-not-give-them-legal-status-clarifies-indias-finance-minister/articleshow/89500097.cms

As i understand this, india will impose 30% taxes on crypto, once they legalize it. How can they offically take tax from soemthing which is not yet legal in thier country.
However i do not believe this is the fianl verdict of the government, there may be many twists and change in statements. Consider the example of russia as they also given such statemnets of legalization of bitcoin and then not to legalize it.
Governments look really confused when it comes on the legal status of bitcoin.

[yazher]

It feels like they will gonna update this regulation after they finalized and announce it to the public. looks like it's a big blow for the local exchanges and the common folks who are only started to use bitcoin or accept it as payment to their stores and services. Since the government saw the potential huge money they can get from it, they won't hesitate to pass this regulation. Looks like India is also still crypto's enemy this year.

[Kakmakr]

Taxes pay their government salaries and they are getting pressure from financial institutions that are saying that they have to pay taxes on other financial tools, but people with Crypto currencies are not taxed.

So what do you do if you see an excuse to tax something.... well, you say it is still illegal ...because you are still working on the legislation.. but you go ahead and tax it, so that your salaries can still get a boost.    (pure hypocrisy shown by a corrupt government)  

[avikz]

Recently India has passed a crypto bill to tax crypto income by 30% but at the same time claiming that taxing cryptos doesn't make them legal and states it's country's sovereign right to tax crypto and this atrocity doesn't stop here as they have mentioned that the decision about banning crypto or legalizing it will taken after further consultation.

Let me clear that for you! The Finance Minister said that taxing crypto doesn't mean that it will become legal. She meant, taxing crypto will not make it a legal tender, i.e, cryptos can't be used against products and services. Otherwise, how can several crypto exchanges are working in the country? Most of them are above 1 billion USD valuation.

The government was clear enough from the very beginning, that crypto will never become a legal tender. We are worried because the government could have banned crypto altogether. But instead they have just taxed it. So it's a positive step forward. Now this tax is just a proposal in the budget. Now the proposal will go to parliament, drafted as a law, passed by the speaker and signed by the president. A long way to go!

[KaliLinux]

So if not legal yet, using cryptocurrency will consider a crime? It's like some countries have been taxing alcohol drinks but it's illegal I'm their country. India making drama form while. They just make things more complicated and encourage people to use cryptocurrency in the black market. Officially announced about Tax, but not yet finalized whether it's legal or illegal. It's just a ridiculous statement to me, not only confusing.

That just shows how some Governments can become a nuisance to themself. How do you even tax something that you consider illegal in your country If it is illegal that means it shouldn't be traded or used and yet you collect from the same illegal source. I think they want to weigh the option, of taking 30% tax against banning which will be better for the Government so I believe we have to wait until the Bill is actually passed.

[franky1]

even in majority of countries.. where alcohol is allowed.. the truth is this

alcohol consumption is illegal and prohibited... then regulated where
only licenced businesses can sell alcohol publicly
only permitted to be consumed by adults
only licenced brewers can brew it for public consumption
only permitted to be brewed for personal consumption by adults

so alcohol is NOT 'free use' or 'open use' or 'legal for all use cases'

same is/will be true for crypto.
prohibited and then regulated for only certain use cases

[Chato1977]

What are we expecting in Indian Government ? they are acting like this for how many years?

having issue of banning and regulating and then allowing ? this is not new from this country so better to get use to it until they finally act a truthful and real law or bills in which people will understand and accept.