CoinDCX CEO expects crypto tax to be reduced after 2024 election.

[pakhitheboss]

I came across an article where Sumit Gupta said that in the next full budget, which is going to happen in July 2024 after the election there would be a reduction from the current tax of 30% to 10% or maybe 5%. He suggested reducing the TDS rate from 1% to 0.01% and making the tax rate consistent with other assets. Considering the way the government is currently handling international exchanges and the way it is trying to force the community to use Indian exchanges. Do you think Gupta's expectations from the government can become a reality?

I doubt that the Indian government is interested in encouraging the crypto community to do business in the country. Their priority seems to be squeezing out the community and milking the middle class through unprecedented taxing. Even if the middle class wants to earn through cryptocurrency, they want to tax them more. The government's policy has been like this since it came into power in 2014, and I do not expect it to change in the future.

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[Bureau]

While they are enjoying a surge in the volume of their exchange they would come up with such a statement. This is all part of the marketing strategy and I do not think that the government would do anything like what Gupta is expecting. The government won't be reducing the tax as they know with their negative attitude they would be generating more revenue and less stress to themselves.

[Bitcoin Smith]

Government is not interested in reducing the tax and they certainly don't care about negative circumstances once elections completes. If they really wanted then they should have already reduced the TDS when they found they lost millions in revenue due to people chose international exchanges to avoid unfair 1% TDS. But what they did is opposite, banning international exchanges and forcing every crypto traders to pay whatever tax the government levied or don't trade at all.

[pakhitheboss]

You both are correct with your analysis as of today I am hearing some more speculating news. The news is that in the next budget, the government will implement the Crypto Regulation Act of India with some more information about taxation. This is being discussed by a few Indian crypto influencers on YouTube. I don't follow any influencer blindly but if they are discussing such topics something is brewing. Let's wait for the mainstream media to come up with an article quoting their source from the Ministry of Finance.

[avikz]

It is pure speculation!

Even though I am speculating as well, I am fairly confident that the crypto tax is not going to change even after election or even in 2025. The current government is not much favourable towards cryptocurrency and they do not want to encourage Indians to get into that. Otherwise they wouldn't have imposed 30% tax.

So clearly I do not see it happening. Rather I see more compliance norms are coming our way after the election.

[TheUltraElite]

We can only speculate here.

But putting in some logical facts together, since the government has blanket banned the crypto exchange URLs via the ISPs, a bigger ban is going to be official some time soon, my guess would be through the next budget.

Bad days come before good, we can just hold on through the storm.

[pakhitheboss]

We can only speculate here.

But putting in some logical facts together, since the government has blanket banned the crypto exchange URLs via the ISPs, a bigger ban is going to be official some time soon, my guess would be through the next budget.

Bad days come before good, we can just hold on through the storm.

Shadow ban is only applicable for 7 international exchanges not all international exchanges. Furthermore their primary focus is on Binance as it has the biggest Indian customer base. If they want to put a formal ban then they would have to ban Indian exchanges and all other international exchanges. I don't this it is possible for them to come with a complete ban, the blanket ban would remain and users will now shift from Binance to other international exchanges.

About the statement from the co-founder of the Indian exchange what do you think?

[avikz]

We can only speculate here.

But putting in some logical facts together, since the government has blanket banned the crypto exchange URLs via the ISPs, a bigger ban is going to be official some time soon, my guess would be through the next budget.

Bad days come before good, we can just hold on through the storm.

It's true that we can only speculate here! However, this speculation is based on certain facts.

1. RBI is strongly opposing cryptocurrency circulation in India. In multiple interviews, the governor had expressed his thought.
2. In the past, a committee led by Subhas Chandra Garg, recommended punitive actions against crypto users.
3. The current tax rate is 30% which is nothing short of publishment.

Looking at these above facts, the chance are very slim for cryptos to become legal in India. But yes, it's a speculation as you have mentioned.

[TheUltraElite]

About the statement from the co-founder of the Indian exchange what do you think?

He is making a bold claim, but I will believe that once I see the budget. A 30 to 10% drop in taxation would mean a lot at least in the current scenario of 30% and a drop in the TDS would be a bonus indeed. But again, I would believe it when I see it and not before that. Just hold your horses till the budget get declared.

Looking at these above facts, the chance are very slim for cryptos to become legal in India. But yes, it's a speculation as you have mentioned.

A lot of people are against it but the people of India want this to happen. We should continue to hold and stack up our coins every month so that we will be at the advantage when the day finally arrives.

[kentrolla]

These Indian exchanges are biggest scammers they charge hefty amount for buyer taker fee which is much higher compared to foreign exchanges and also they were so happy when government banned the foreign exchanges as it led to more users shifting to Indian exchanges and they were already milking us with huge fees.

I would never belive any word coming out of their mouth and they are using it to funnel more funds to their exchange and you can never expect anything good from this government and even if the tax is reduced I would still not use any Indian exchanges as they are just rip offs.

[pakhitheboss]

These Indian exchanges are biggest scammers they charge hefty amount for buyer taker fee which is much higher compared to foreign exchanges and also they were so happy when government banned the foreign exchanges as it led to more users shifting to Indian exchanges and they were already milking us with huge fees.

I would never belive any word coming out of their mouth and they are using it to funnel more funds to their exchange and you can never expect anything good from this government and even if the tax is reduced I would still not use any Indian exchanges as they are just rip offs.

I would never suggest anyone use an Indian exchange for trade purposes. Use an Indian exchange only when anyone needs to convert their crypto to INR or for buying(If anyone here is not confident of P2P services) using INR. The amount they charge for cryptocurrencies is atrocious and sometimes makes me wonder why the government is not regulating them. I hope in the next budget scheduled in July, the new government of India will implement the long-awaited crypto regulations. If they do not do it and keep forcing the community to use Indian exchanges with their shadow ban then I am confident we will see a lot of illegal activities happening in India. 

[pawanjain]

We cannot really rely on any of these articles because they are all just a speculation and cannot guarantee anything.
Unless and until there is an official announcement from a government authorized person, all of these articles are their speculations will go in vain.
On top of that, the numbers mentioned in the article are too vague. I don't think the government will even considering dropping tax from 30% to directly at 5% - 10%.

[TheUltraElite]

We cannot really rely on any of these articles because they are all just a speculation and cannot guarantee anything.
Unless and until there is an official announcement from a government authorized person, all of these articles are their speculations will go in vain.
On top of that, the numbers mentioned in the article are too vague. I don't think the government will even considering dropping tax from 30% to directly at 5% - 10%.

Like I said, he made a bold claim but I will listen to it only when I see it. No use pumping the crypto crowd in India with these Messiah like words, we have seen our government for years do nothing about simple things like Hospital sanitation and Corruption let alone give some thoughts to cryptocurrency.

We can only do the waiting game for now.

[Bureau]

We cannot really rely on any of these articles because they are all just a speculation and cannot guarantee anything.
Unless and until there is an official announcement from a government authorized person, all of these articles are their speculations will go in vain.
On top of that, the numbers mentioned in the article are too vague. I don't think the government will even considering dropping tax from 30% to directly at 5% - 10%.

Like I said, he made a bold claim but I will listen to it only when I see it. No use pumping the crypto crowd in India with these Messiah like words, we have seen our government for years do nothing about simple things like Hospital sanitation and Corruption let alone give some thoughts to cryptocurrency.

We can only do the waiting game for now.

Imagine if it happens then there would be a surge of volume in local exchanges. The need is for the government to first regulate these exchanges in India as they have a lot of issues. Then if the government thinks a reduction of tax would increase the volume and in turn increase the tax collection they should reduce the tax burden.

I think they have tried and tested the 30% capital gain tax and the 1% TDS and they did not achieve the collection amount for TDS as the volumes shifted to International exchanges. I think there is a possibility that in July the government would respond to this issue with a tax reduction.

[kentrolla]

We cannot really rely on any of these articles because they are all just a speculation and cannot guarantee anything.
Unless and until there is an official announcement from a government authorized person, all of these articles are their speculations will go in vain.
On top of that, the numbers mentioned in the article are too vague. I don't think the government will even considering dropping tax from 30% to directly at 5% - 10%.

Like I said, he made a bold claim but I will listen to it only when I see it. No use pumping the crypto crowd in India with these Messiah like words, we have seen our government for years do nothing about simple things like Hospital sanitation and Corruption let alone give some thoughts to cryptocurrency.

We can only do the waiting game for now.

Imagine if it happens then there would be a surge of volume in local exchanges. The need is for the government to first regulate these exchanges in India as they have a lot of issues. Then if the government thinks a reduction of tax would increase the volume and in turn increase the tax collection they should reduce the tax burden.

I think they have tried and tested the 30% capital gain tax and the 1% TDS and they did not achieve the collection amount for TDS as the volumes shifted to International exchanges. I think there is a possibility that in July the government would respond to this issue with a tax reduction.

Let's hope for the best but as you have rightly mentioned the exchanges should be first regulated as there are so much of issues in most of the Indian exchanges and coindcx is not exception. But I am more eager for the day when government lifts ban on foreign exchanges because we need to teach Indian exchanges a lesson for milking us during the difficult time and for the higher charges like buyer and taker fee and transaction fee compared for foreign exchanges.

This issue has to be raised in parliament because government would have already realised it cannot gain anything with this stupid policy of 30% tax and 1% TDS as it's bull shit.

[pakhitheboss]

Let's hope for the best but as you have rightly mentioned the exchanges should be first regulated as there are so much of issues in most of the Indian exchanges and coindcx is not exception. But I am more eager for the day when government lifts ban on foreign exchanges because we need to teach Indian exchanges a lesson for milking us during the difficult time and for the higher charges like buyer and taker fee and transaction fee compared for foreign exchanges.

This issue has to be raised in parliament because government would have already realised it cannot gain anything with this stupid policy of 30% tax and 1% TDS as it's bull shit.

There are two exchanges in India which according to my experience in the past are the worst. WazirX and CoinDCX and sometimes I feel the management of these exchanges think that we as a community are dumb and have no options but to use them. First, they have atrocious chargers for trading, withdrawing, and depositing cryptocurrencies. Then they have a habit of halting the withdrawal of cryptocurrencies without prior notice to the users. The withdrawing charges for INR are high and they always have issues with the partner bank. I hate to say it but if anyone here is using any of these two said exchanges then they seriously need to reconsider them.

[amishmanish]

I think government has its hands tied because the nature of cryptocurrency is such that it can lead to a lot of scams and discontent in a country like India. The anonymous nature of the related businesses attracts the worse type of scammers. If the government comes out with actual regulations, you would see an upsurge in the number of scams where shiny, scammy adverts will appear saying "certified by the govt of India" or something of that sort.

The government and more importantly the financial and law machinery isn't well-oiled enough to deal with and prevent such scams.

I doubt they have any options. They have put it under taxation as an interim measure while leaving the brave to try and earn in this market. The scammers will still scam but i guess the logic goes that they'll have to pay taxes when converting to fiat.

Recently there were reports about apps that act as loan sharks and utilize cryptocurrency payments. Those kind of scams will have a complete free run in India if they can catch enough people in the name of being able to use crypto for loan funds.

The situation is complex and would need dedicated resources and departments in RBI to regulate such players. Doubt its anywhere on the list of priorities for the government.