This is going to be bad for the Indian Bitcoin community

[cheezcarls]

Okay so last time, the Indian government has proposed a 30% tax on capital gains whatever profit do the citizens get from selling the assets.

But for this one.....argggh!!!!

Source: https://coinmarketcap.com/alexandria/article/this-will-kill-crypto-two-new-taxes-to-be-slapped-on-indian-investors-from-next-week

So not one, but two taxes that will be imposed starting next week. This is definitely bad (or shall I say worse) for the Indian crypto community. 1% for every transaction? What is the government thinking about this?

It'll create a heavy burden in the hard earned money of the Indian crypto community. As the title says "This will kill crypto" and expecting that the trading volume in India will experience a sharp decline after this comes into full effect.

What are your opinions on this one guys regarding the double taxes imposed by the Indian government to their crypto citizens? Thanks!

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[KennyR]

This is an expected one, because the ruling government have never participated in any of the interview to give their clear view on cryptocurrency usage. Once bill is passed in the parliament, they won't think of common public. The opposition party requested clarity on the law. For this, finance minister have an explanation stating we're into discussion and the plan is whether to continue if or not.

[coupable]

It'll create a heavy burden in the hard earned money of the Indian crypto community. As the title says "This will kill crypto" and expecting that the trading volume in India will experience a sharp decline after this comes into full effect.

What are your opinions on this one guys regarding the double taxes imposed by the Indian government to their crypto citizens? Thanks!

[coolcoinz]

1% of every transaction will kill trading. Somebody should tell them that many investors end up losing money on their trades or making multiple small trades every day back and forth. Also, some transactions are made purely to send a cryptocurrency with a low fee or to hide the transactions in a privacy chain. Also, I hope the government realizes the amount of paperwork they could be facing from a day trader who made 1000 transactions in a month and has to log each of them and calculate owed tax. Not only would that tax bankrupt him but it would also bury the tax office in paperwork if they required him to prove all these transactions. Also, it's not like crypto trading is more profitable than stocks and currencies. Why should it be treated differently? A traditional trader will pay 15% and a crypto trader 30%? Establishing stupid laws is only going to make people avoid them and trade using vpns and foreign currencies or cash.

Fortunately "discussions on how to regulate digital assets are ongoing. " So it is not yet set in stone. They should get a few experts to tell them that taxation is fine as long as it doesn't aim to kill the industry. 15-20% annual taxes are normal around the world, 1% of every transaction is not.

[noorman0]

That is a real pressure for crypto users, the government always wants to maximize profits at every opportunity. But it will indirectly teach users to run away from taxes. While crypto isn't really a tax evasion solution, if users start leaving centralized crypto services to transact it will make it more difficult for governments to filter transactions based on that country.

However, as long as the government is also willing to provide legal guarantees that are commensurate with the suppressing tax rates, 1% is not a problem when considering cryptocurrencies can fluctuate by more than 1% every minute.

[Doan9269]

Government can really play smart once it comes to the aspect of paying tax from any bitcoin mining firm because that is their only way to create their own regulation on them since it cannot be centralized, ever since they tasted the first approach of 30% and feels the output and result is worth demanding for more but this is really going to be affecting the miners, you need to know how India is taking tax payment without levity hand.

[Gyfts]

What are your opinions on this one guys regarding the double taxes imposed by the Indian government to their crypto citizens? Thanks!

This shouldn't come as a surprise. Bitcoin can't undergo a traditional ban because of the difficulty to enforce. A ban would be nothing more than a gesture. Instead, India would rather allow Bitcoin to be legal and milk it for tax revenue. The dual purpose is generating more funds for the government to misuse and to incentivize people to avoid crypto usage/investments.

[darkangel11]

All they're proving is that they're greedy beyond measure. They don't want to ban it beacuse they know they can't so the next best thing is to milk it, but they're too greedy for their own good. They think people will continue to make some profit and pay 30% tax on it, but no. Most people will either turn to tax evasion because 30% is enough to make it wort the risk, or they'll stop trading in India completely.

To make people pay taxes you need these not to be a huge burden and allow people to progress and invest in their business.

[PhoenixZephyrus]

The ruling government has been trying to control lot of aspects of people's lives. I fear this is just being implemented as crypto has been rising in popularity in India recently, with a lot of youtubers, streamers, and influencers promoting it. Just as adoption was beginning to rise - these taxes make me think that they want to nip it in the bud. Just a year or so back, the government gave some hope that it was legalized and it would look into reasonable regulations I think? Well if this is reasonable...

Sitharaman responded by saying that “there is no confusing signal" and 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." She said that the government is taxing crypto because people are profiting from it.
She added that the TDS is “more for tracking, it is not an additional or new tax" and that "TDS can always be reconciled with the total tax to be paid to the government."

India Passes Stiff Crypto Tax Laws Despite Industry Uproar

There have been a lot of headlines recently regarding "Sell all your crypto assets" and such...this is just a crushing move for the crypto industry in India that was just starting to grow and become accepted.

[Woodie]

These high taxes they keep  imposing on their people will make the current government unpopular should it turn to have more crypto users, and as if the first tax isn't enough but twice...come on!! What's the idea behind taxing people twice,are they trying to change people's interests to something else other than crypto??

Tbh all this will lead to tax invasion or simply lack tax remittance

[RapTarX]

I have read the article earlier on a local news channel. It's weird how these shit are reacting! I guess this is planned to reduce the investment in cryptocurrency as this may affect country’s overall economy & GDP as well.
Nevertheless, it's a bad move indeed. How come one investment is subjected to get taxed twice! Why the fuck would they charge at the time of transaction 

[DoublerHunter]

^ It could be the way to stop their people from trading crypto, it seems like they discourage trading in crypto and that is why they want to double taxes.
I am now thinking about madness, yes it is now the madness on the trader using centralized exchange, so is this the time for them to use a decentralized exchange to avoid those taxes that may impose?
However, aside from trading probably it is good if you will choose investment instead.

[||bit]

Russian government had accepted the crypto for the payment of their trade.This is happened because of the swift ban to the government of Russia.The keep on search of the alternatives solution for this.With some good analytical support from Russian back end government.They had found the correct way to approach the other countries.Now export happening to other nations with hidden move.

[BIT-BENDER]

I am not surprised about this, the Indian government hasn't been friendly with crypto-currency, and I believe they are doing everything possible to continue to frustrate the Crypto-currency community.

What the Crypto-currency community needs is more decentralization, I am really not impressed with the way the Crypto-currency Exchanges and many others are going centralized.

[PrivacyG]

While crypto isn't really a tax evasion solution, if users start leaving centralized crypto services to transact it will make it more difficult for governments to filter transactions based on that country.

Although increasing, the number of Decentralized Exchange users is still too low to matter.  We are still so far away from the moment a significant number of Centralized Exchange users move towards full decentralization.

However, as long as the government is also willing to provide legal guarantees that are commensurate with the suppressing tax rates, 1% is not a problem when considering cryptocurrencies can fluctuate by more than 1% every minute.

1% is a problem.  You will owe less Bitcoin to the government the more Bitcoin's price grows, but at the same time you are still going to own less Bitcoin at the end of the day.  Moreover, 1% means 9.56% lost in thin air after 10 transactions to which you add the other capital gains tax that they want introduced.  It is not bad, it is AWFUL.  And this is considering you deduct taxes from your balance after every transaction.  Otherwise, it is worse.  10 times 1% is 10% owed.

You have the false feeling that if you own $10k in Bitcoin and the price grows by 1%, you will pay $100 and will still have $10k left.  Sure.  But if $10k is equal to 0.25 Bitcoin, after a 1% grow you have to pay 0.00275 and even if you are now left with $10k in Fiat value, you will only have 0.24725 Bitcoins left inside your wallet.

Hypothetical scenario.  You own 1 Bitcoin.  The price remains stable for one month and you make 10 transactions and after each of them you deduct taxes.  You now owe around 0.0956 BTC to the government.

-
Regards,
PrivacyG

[kaya11]

Okay so last time, the Indian government has proposed a 30% tax on capital gains whatever profit do the citizens get from selling the assets.
 1% for every transaction? What is the government thinking about this?

It'll create a heavy burden in the hard earned money of the Indian crypto community. As the title says "This will kill crypto" and expecting that the trading volume in India will experience a sharp decline after this comes into full effect.

What are your opinions on this one guys regarding the double taxes imposed by the Indian government to their crypto citizens? Thanks!

I think if you see it clearly 1 percent is little that you can't even feel it compared to normal taxes that government in our country that gets in every most of the transactions. It is 12 percent so I'd rather go with it or migrate to somewhere with low tax. Or if you could you should stop engaging in Bitcoin already, unless you gain so many profits then that wouldn't do.

[batang_bitcoin]

I think that India is still in the phase of testing rules with cryptocurrency matters. But this kind of ruling will really hit a lot of transactions coming from their country.
If they want to benefit from it, they should do better and not do it per transaction. Their citizens might just go through using privacy coins to hide their transactions from the government if they want a share of the pie per transaction that they do. Noting that it's another tax aside from the 30% tax they're implementing, it's really too much.

[Vaskiy]

Right now if Reliance industries or Adhani group of companies have preferred using bitcoin or other cryptocurrencies, then we might not be having such a big tax. The present government is always in favour of the corporate networks and never think of the middle class people or the lower bottom who somehow finds a way to uplift his/her life.

Tax over the cryptocurrency is high, beyond that is the tds of 1% which means the government wants ones entire profit out of cryptocurrencies. When more countries adopt bitcoin India might face pressure to lower the tax on cryptocurrency.

[Yogee]

... But for this one.....argggh!!!!

Why so emotional about this?

So not one, but two taxes that will be imposed starting next week. This is definitely bad (or shall I say worse) for the Indian crypto community. 1% for every transaction? What is the government thinking about this?

The Indian Government has been very clear about this form the start. The 1% TDS or Tax Deducted at Source was also introduced together with the 30% Capital Gains Tax. Why make a fuss about it now?

It'll create a heavy burden in the hard earned money of the Indian crypto community. As the title says "This will kill crypto" and expecting that the trading volume in India will experience a sharp decline after this comes into full effect.

People are sometimes too dramatic whenever they hear about taxes. Indian crypto traders have made gains in the past without paying taxes and I doubt they will stop now because they do not want to share part of the gains to the Government. There are ways to minimize taxes legally like holding on to your BTC longer than you used to before selling.

What are your opinions on this one guys regarding the double taxes imposed by the Indian government to their crypto citizens? Thanks!

Tax or ban? You choose.

[Dave1]

I am not surprised about this, the Indian government hasn't been friendly with crypto-currency, and I believe they are doing everything possible to continue to frustrate the Crypto-currency community.

What the Crypto-currency community needs is more decentralization, I am really not impressed with the way the Crypto-currency Exchanges and many others are going centralized.

Regardless though, what will the government accomplished by being harsh on crypto when everyone around them are trying to be crypto friendly? Their government is going backward with this kind of attitude.

It could frustrate our Indian crypto community, but we all know that some of them are going to continue with caution, regardless of their government being anti-crypto.