30% tax on crypto income in INDIA

[bhooscream]

At present we all know that in India, up to 30% of one's income is spent on crypto. And it has affected every Indian who works in the crypto industry.

A too bad attitude from the government, 30% is a big number, are they trying to kill every crypto user in India? If the government dislikes crypto, it is better to ban it than to kill crypto users with big taxes. If I were Indian people, I'll try to gather crypto people and try to criticize the government through discussion or demonstration. I have no intention to provoke, but I assume it is a realistic solution.

[DeathAngel]

30% is too much man, I would be looking to get the hell out of there to be honest. Many countries exist with 0% taxes on bitcoin. I am in the UK where we pay 20% on profits. If it went as high as 30% I would look to move.

[Ale88]

This is going to impact only the Indian cryptocurrency market that, with all due respect, it's not very important. We survived the actual ban from China, not for bitcoin only but for mining as well, having or not having India won't change things, I just feel sorry for the Indian people.

I mean I wouldn't say its not very important? Because according to statistics, India has the most "number" of people owning crypto. Just by sheer number of people, it has the "largest user base", 100 million, compared to the ~25-30 million in USA. Sure, USA still has the most trading volume and India isn't even close, but this growth in India has been just in the past 1-3 years. The growth is exponential, mostly due to the median age of Indian population being 28.4 yrs (Source: worldometers), and them being eager to learn about new technology.

To be honest I'm very surprised to see that 7.30% of the Indian population own crypto, it's way more than what I was expecting. Anyway I don't change my mind, we always looked at China as one of the most important countries for the crypto world, they banned bitcoin, closed down exchanges and mining factories, and yet we're still here. At this point I'm curious to see if the Indian government will understand that this 30% tax is not gonna help anyone.

[BountyNova]

Leave the country for now

[eaLiTy]

30% is too much man, I would be looking to get the hell out of there to be honest. Many countries exist with 0% taxes on bitcoin. I am in the UK where we pay 20% on profits. If it went as high as 30% I would look to move.

Anyone who is holding a much larger holding of cryptocurrency will move out of the country rather than paying 30% tax because you are bound to pay irrespective to your profit or loss from what i understand. I know a few individuals who already moved out to tax free heavens and i know a few planning to move out of the country simply because of 30% tax which is really high with the amount of crypto they are holding.

[Ale88]

Anyone who is holding a much larger holding of cryptocurrency will move out of the country rather than paying 30% tax because you are bound to pay irrespective to your profit or loss from what i understand. I know a few individuals who already moved out to tax free heavens and i know a few planning to move out of the country simply because of 30% tax which is really high with the amount of crypto they are holding.
[/quote]
I think it's almost kind of funny how governments always think that simply raising taxes is the solution for everything, and at the same time the more the taxes are high, the more people will do everything in order to avoid paid them. Several countries are already losing crypto-millionaires because of the crazy taxes, and some smart countries are welcoming this new wealthy generation that is going to invest and spend money in their countries.

[DanWalker]

The 30% tax rate does not seem to satisfy the Indian government, recently it has been reported that they want to increase the tax from 30% to 50%. This is crazy, they are clearly trying to discourage Indian investors and force them to give up crypto instead of enacting a law banning it. If this passes, it will be the end of the crypto market in India.
https://beincrypto.com/indian-ruling-party-mp-suggests-increasing-crypto-tax-from-30-to-50/

[cryptoaddictchie]

At present we all know that in India, up to 30% of one's income is spent on crypto. And it has affected every Indian who works in the crypto industry. If you can guide further on how to go further now. Give some suggestion.

Thats ridiculously high. Also Ive seen that even you loss or not gained from profit will be taxed regardless you gain and loss again. Damn that should be revised, of course how can government taxed someone who loses the money he do trading to earn and tax are only for profits or gained or income but losses? I am not favor with India huge tax. They should do what Indonesia has implemented.

[Ale88]

The 30% tax rate does not seem to satisfy the Indian government, recently it has been reported that they want to increase the tax from 30% to 50%. This is crazy, they are clearly trying to discourage Indian investors and force them to give up crypto instead of enacting a law banning it. If this passes, it will be the end of the crypto market in India.
https://beincrypto.com/indian-ruling-party-mp-suggests-increasing-crypto-tax-from-30-to-50/

Or simply people will completely stop declaring any crypto possession and will find a way to spend cryptos without withdrawing them from the exchanges. 30% is already crazy, 50% it really means they live on a different planet.

[lalabotax]

Leave the country for now

Do you think it is easy to leave the country? I think people in India prefer to leave crypto than to leave their country. Leaving the country isn't the solution, it is the same as you are running away from the problem.

The 30% tax rate does not seem to satisfy the Indian government, recently it has been reported that they want to increase the tax from 30% to 50%. This is crazy, they are clearly trying to discourage Indian investors and force them to give up crypto instead of enacting a law banning it.

Clearly Indian government wants all crypto investors to give up and leave crypto assets. It is a very unfriendly way from the government, they maybe want to increase it again after they decide to increase to 50%. Their target seems 100% for crypto tax, it is absolutely the situation when all crypto investors have no choice to survive. 100% = ban. 

[Ale88]

Their target seems 100% for crypto tax, it is absolutely the situation when all crypto investors have no choice to survive. 100% = ban. 

How can you tax something at 100%? If you tax 100% of the gains it means that they take everything, so why should someone even take the risk to buy crypto in that case? It also would be a ridiculous way to ban cryptos, at that point they can simply say they are banned, just like China did, hiding behind a "100% tax rule" doesn't make sense.

[pakhitheboss]

The government does not want anyone to invest in cryptocurrency and this is why they want 30% on every transaction. From July this year 1% TDS will be also charged. Indian cryptocurrency exchanges have already reported a dip in their volume and it might increase more after July. This is a bad decision and it will hamper the growth and development of India in the future.

[eaLiTy]

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Several countries are already losing crypto-millionaires because of the crazy taxes, and some smart countries are welcoming this new wealthy generation that is going to invest and spend money in their countries.

When you have dumb politicians who are making these rule set, people will move out to safer zones where the taxes are really low or tax free heavens. A few of my friends in the cryptocurrency space moved to Saint Kitts and Nevis where there is no income tax and some of them moved to UAE. If not for the high taxes, would have stayed back but now they force everyone with substantial amount to move out of the country. I would not mind paying 10% to 15%, but 30% is too much of money for the hard work and risk we take.

[Altryist]

When you have dumb politicians who are making these rule set, people will move out to safer zones where the taxes are really low or tax free heavens. A few of my friends in the cryptocurrency space moved to Saint Kitts and Nevis where there is no income tax and some of them moved to UAE. If not for the high taxes, would have stayed back but now they force everyone with substantial amount to move out of the country. I would not mind paying 10% to 15%, but 30% is too much of money for the hard work and risk we take.

30% is a robbery, and it is obvious that such large taxes are intended to discourage people from dealing with cryptocurrencies. I will say that even 10% is a lot, 5% is the most adequate tax. If there is a good assets in cryptocurrency, then moving to another country is a way out, but it is not always easy, especially when there is a large family, children who will need to adapt to a new place.

[KennyR]

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Several countries are already losing crypto-millionaires because of the crazy taxes, and some smart countries are welcoming this new wealthy generation that is going to invest and spend money in their countries.

When you have dumb politicians who are making these rule set, people will move out to safer zones where the taxes are really low or tax free heavens. A few of my friends in the cryptocurrency space moved to Saint Kitts and Nevis where there is no income tax and some of them moved to UAE. If not for the high taxes, would have stayed back but now they force everyone with substantial amount to move out of the country. I would not mind paying 10% to 15%, but 30% is too much of money for the hard work and risk we take.

This is the reality of India who hold a good volume of cryptocurrencies. India too have a plan of having its own CBDC which too is a reason for the heavy taxation on cryptocurrency. In an interview the RBI deputy governor talked about the country's CBDC.

Commenting on different CBDC models, Deputy Governor pointed out that there are many “uncertainties in terms of which model works, which design works well in terms of its impact on the banking system, on data privacy, on monetary policy.” He opined:

I think almost all central banks and we are no exception will probably go in for a very careful and calibrated, nuanced manner. The Indian government is currently working on a framework for cryptocurrency. Finance ministry officials are reportedly consulting with international organizations on the matter, including the International Monetary Fund (IMF) and the World Bank.India's Digital Currency to Take 'Very Calibrated, Graduated' Approach, Says RBI Deputy Governor

[Ale88]

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Several countries are already losing crypto-millionaires because of the crazy taxes, and some smart countries are welcoming this new wealthy generation that is going to invest and spend money in their countries.

When you have dumb politicians who are making these rule set, people will move out to safer zones where the taxes are really low or tax free heavens. A few of my friends in the cryptocurrency space moved to Saint Kitts and Nevis where there is no income tax and some of them moved to UAE. If not for the high taxes, would have stayed back but now they force everyone with substantial amount to move out of the country. I would not mind paying 10% to 15%, but 30% is too much of money for the hard work and risk we take.

I remember that I read an article time ago (which I can't find right now) that was explain why and how people are willing to pay taxes up to 15% if I remember properly, when taxes go above 15% usually people will start finding ways to declare less, etc, because they feel it's too much. Of course the more they increase taxes, the more people will start declaring less than what they should actually declare to save some money.

[suryana]

crypto miners are subject to a 30% tax in India even though the 30% can be said to be quite large but if the adoption process is carried out widely then it will not be a problem as long as bitcoin can become legal in the country and no longer gets opposition from various groups because it can affect the price bitcoin in the stock market, of course this is a good step for bitcoin to again increase public trust while at the same time having a positive impact on bitcoin with the implementation of taxes carried out on crypto in a country