12.5L cap limit of no income tax applies to crypto?

[LucyFurr]

I would like to know a little clarification on this matter. Under the new tax regime the tax slab of 0% tax increased to 12.5L but when I did some research it doesn't apply to the crypto gains. Means even if I traded crypto and made 1000INR profit then I am bound to pay 30INR for tax irrespective of my tax slab, right?

[avikz]

Your understanding is correct! Crypto is not a part of your 12.5 lakh exemption limit. If you have traded crypto and made profit, you are supposed to pay 30% tax. It will not be exempted.

Also if you have traded via an Indian exchange, they will deduct 1% TDS on every transaction so that the income tax department knows about your crypto trades. There is a separate section in your tax form that talks about cryptocurrency taxation.

[JSRAW]

We are sautely aulaad (Step children) of our Mai baap Gov so they treat Crypto as Gambling and it's the same old flat 30% tax

Not related but recently saw some news where they relaxed TDS rules for lottery, horse races, etc. Didn't bother to check the details but this count for something, considering they love sucking every penny as taxes.

[pawanjain]

I would like to know a little clarification on this matter. Under the new tax regime the tax slab of 0% tax increased to 12.5L but when I did some research it doesn't apply to the crypto gains. Means even if I traded crypto and made 1000INR profit then I am bound to pay 30INR for tax irrespective of my tax slab, right?

Yes you are bound to pay 30% flat tax on crypto profits and that is 300 INR on a 1000 INR profit and not 30 INR.
In addition to that, you are liable to pay 1% TDS on every transaction you make on an Indian crypto exchange.
But obviously you can claim the TDS back when you fill the ITR form in case you have overpaid the taxes.
There is no exemption on crypto profits. The government wants us to die poor while filling their pockets.

[Bitcoin Smith]

As others said, the cap limit doesn't apply for crypto gains just like the gambling winnings, you have to pay 30 rupees for every 100 rupees you make from crypto.

But it's applicable only if you convert them to rupees, so if possible just keep it in the Bitcoin as long as possible, we may see some changes in the future regarding taxation if the situation demands then it will ease out the tax burden on crypto community.

[avikz]

As others said, the cap limit doesn't apply for crypto gains just like the gambling winnings, you have to pay 30 rupees for every 100 rupees you make from crypto.

But it's applicable only if you convert them to rupees, so if possible just keep it in the Bitcoin as long as possible, we may see some changes in the future regarding taxation if the situation demands then it will ease out the tax burden on crypto community.

I believe that's what a lot of people are doing. Buying at the dipa but holding them for a long long term unless they really need the money for some emergency. Same goes for me as well. Since the day Sitaraman tai announced that 30% crypto tax, I have stopped selling. I am just accumulating Bitcoins for the future. There's no point is selling it if I have to pay such a huge tax.

Indian government is just ruining the game of crypto in India. Largely due to the pressure from their banking lobby.

[pawanjain]

As others said, the cap limit doesn't apply for crypto gains just like the gambling winnings, you have to pay 30 rupees for every 100 rupees you make from crypto.

But it's applicable only if you convert them to rupees, so if possible just keep it in the Bitcoin as long as possible, we may see some changes in the future regarding taxation if the situation demands then it will ease out the tax burden on crypto community.

I believe that's what a lot of people are doing. Buying at the dipa but holding them for a long long term unless they really need the money for some emergency. Same goes for me as well. Since the day Sitaraman tai announced that 30% crypto tax, I have stopped selling. I am just accumulating Bitcoins for the future. There's no point is selling it if I have to pay such a huge tax.

Indian government is just ruining the game of crypto in India. Largely due to the pressure from their banking lobby.

You mean the government have imposed these taxations just because of RBI ?
Well, I think they would have imposed such hard taxations laws for two reasons.

1. To fill their pockets
2. To discourage crypto in India

RBI is just having a kind of mutual benefit from this I believe.

[Bitcoin Smith]

You mean the government have imposed these taxations just because of RBI ?
Well, I think they would have imposed such hard taxations laws for two reasons.

1. To fill their pockets
2. To discourage crypto in India

RBI is just having a kind of mutual benefit from this I believe.

If I am not wrong RBI was the one to shadow ban cryptos in India but later they were forced to turnover their decision by the supreme court so Sakthikandha Das was aware of decentralisation can collapse the banking system which is why they were against the crypto. And our government doesn't know shit about crypto, when government officials suggest them and saying we can tax 30% they simply went okay with that without analysis any further.

Politician create the policies but bureaucrats were the actual ones behind all the ideas.

[pawanjain]

You mean the government have imposed these taxations just because of RBI ?
Well, I think they would have imposed such hard taxations laws for two reasons.

1. To fill their pockets
2. To discourage crypto in India

RBI is just having a kind of mutual benefit from this I believe.

If I am not wrong RBI was the one to shadow ban cryptos in India but later they were forced to turnover their decision by the supreme court so Sakthikandha Das was aware of decentralisation can collapse the banking system which is why they were against the crypto. And our government doesn't know shit about crypto, when government officials suggest them and saying we can tax 30% they simply went okay with that without analysis any further.

Politician create the policies but bureaucrats were the actual ones behind all the ideas.

Yes, I am aware of that. RBI was against crypto since inception and that's the reason why we faced bank accounts being frozen initially.
Some banks even it freeze the accounts today if involved money is from illicit source.
But do you really think that RBI would be the sole reason why the government would impose 30% flat tax on crypto income ?
I personally belive their agenda is to demotivate the crypto people in India while filling their own pockets.

[Bitcoin Smith]

But do you really think that RBI would be the sole reason why the government would impose 30% flat tax on crypto income ?
I personally belive their agenda is to demotivate the crypto people in India while filling their own pockets.

Could be, just like any central bank RBI also aware of the decentralised money can potentially give freedom to their people and it's almost can be a potential threat to banks future so why take chances when they have government who doesn't understand anything and just be happy when we can say we can tax people on cryptos too. Banks has their agenda to do while government can also benefit from it but things are bit different now especially big players are entering like Binance, Coinbase and Bybit which could bring some changes.

[JSRAW]

Despite all this fuckery, my retarded brain hoping that atleast this administrator had wisdom to stack some sats while they ran all the fearmongering of banning Bitcoin.

Even China stacked some and freaking Bhutan added some into their piggy bank. I'd be happy if someday they announce it with a smirk on the face, a pipedream but would be amazing.

[Bitcoin Smith]

Despite all this fuckery, my retarded brain hoping that atleast this administrator had wisdom to stack some sats while they ran all the fearmongering of banning Bitcoin.

Even China stacked some and freaking Bhutan added some into their piggy bank. I'd be happy if someday they announce it with a smirk on the face, a pipedream but would be amazing.

I don't think our intellectual leaders are capable of doing that.

I don't even remember anyone from BJP party talked highly about bitcoin while they praised about blockchain and it's use case on recent events.

US on the mission already to accumulate more bitcoin than anyone to prove their dominance and China has been doing the accumulation for very long while India focused on the religion and language pride.

[TheUltraElite]

I am sure that the rich people in this country have already started hoarding bitcoin if not the government.

Maybe the government is doing so too but they are not drawing too much attention. The more you think about it the more headache you will accumulate, so best not to think but to grab bitcoin at every dip and sit on that till we see Coinbase and co follow up their operations and open up shop in India when eventually the government will be force to take similar steps like US.

[JSRAW]

Despite all this fuckery, my retarded brain hoping that atleast this administrator had wisdom to stack some sats while they ran all the fearmongering of banning Bitcoin.

Even China stacked some and freaking Bhutan added some into their piggy bank. I'd be happy if someday they announce it with a smirk on the face, a pipedream but would be amazing.

I don't think our intellectual leaders are capable of doing that.

I don't even remember anyone from BJP party talked highly about bitcoin while they praised about blockchain and it's use case on recent events.

US on the mission already to accumulate more bitcoin than anyone to prove their dominance and China has been doing the accumulation for very long while India focused on the religion and language pride.

So far, heard only 1 member of Loksabha speaking about this issue (1% TDS drama) and that too for like 4-5 mins because of a time limit. Guess, Priyanka Chaturvedi (Uddhav's Shiv Sena) also spoke about it but it was a mere formality.

Other than that, no one from the BJP or the Opposition uttered the word, unless it was related to Tax or terror funding.

[LucyFurr]

Thanks for all the replies

[pawanjain]

I am sure that the rich people in this country have already started hoarding bitcoin if not the government.

Maybe the government is doing so too but they are not drawing too much attention. The more you think about it the more headache you will accumulate, so best not to think but to grab bitcoin at every dip and sit on that till we see Coinbase and co follow up their operations and open up shop in India when eventually the government will be force to take similar steps like US.

Not only the rich but even the middle class people of India are wise enough to understand how fruitful holding bitcoin can be.
I guess that's the reason why people like you, me and rest others in the Indian board are still active around.
I am sure there are many others who would be holding bitcoin in India. After all, the crypto population has a good number of Indian users.

[Bitcoin Smith]

Not only the rich but even the middle class people of India are wise enough to understand how fruitful holding bitcoin can be.

I don't think so, yeah people in India is probably holding Bitcoin but majority of the crypto community in India is not even aware of Bitcoin they just treat crypto as quick rich scheme so their choice will be the altcoins that's why Doge, Shiba and now Pi is trending than Bitcoin.

We should teach them about Bitcoin is more than just an investment thing but many of them are not ready to listen anything.