Evident that 30% tax is driving people away!

[Bitcoin Smith]

Someone who wanted to use crypto but didn't just because he has to pay more when it comes to buy them which is common but ever since Wazrix got hacked the people got no other choice than paying a bigger price than the current market price. Also what are the best option to buy bitcoin without paying too much from the current price?

Here's the one discussed in different thread.

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Also, I’m really considering crypto, the downside is so big it genuinely makes me not even want to consider it. Here in India, buying p2p from Binance (I only know Binance cause I used to initially use it to gamble through crypto and have only used them) buying from p2P here in India mean a 20-25% markup on live prices, then I get a quarter to gamble with, let’s say I make my money back. Theres a 30% straight tax on redeeming crypto as well as platform fees for Binance for selling P2P. All in all, it just makes it super hard for us to work off crypto.
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About crypto and fiat in India, I can't give much input as I have zero clue of the complexity of how India and crypto works, but if I infer correctly, Bitcoin Smith is an Indian, so maybe he can give an input. And this forum also have India Local Board, maybe you can ask around there and perhaps they accept p2p with lower "tax" rate?

Thanks for mentioning me here, Posting it as separate thread since the original thread is locked

When it comes to p2p in general we got to pay 5 to 10% higher fee than the market price while buying bitcoin so the better option is buy USDT which you can get close to the market price and then use the USDT to buy bitcoin will be cost effective compared to buying bitcoin directly and since FIU made AML policies stricter exchanges left the BTC/INR pairs so the only opinion now is to buy via p2p, there are some Indian exchanges like Unocoin still got it but I won't recommend using any Indian exchanges because there are many issues with deposits and withdrawals.

Regarding the tax, yes there is 30% flat rate irrespective of short or long term capital gains that is basically an attempt from the government to discourage the users to not to use cryptos. The legal way to avoid the 30% tax is using gift cards but you can always use find someone from the community to do p2p then you don't need to report it as earnings from crypto and get 0% tax up to 12.5 Lakhs under the new tax regime. I am not really an expert though so don't take it as financial advice rather an opinion, to get proper answer find the professional in your local then you may find better ways to legally avoid the taxes.

[IIrik11]

i know a lot of people like that irl

one of my father's friend wanted to buy some crypto at the start of this year

he contacted me and i told him all the ways and how he should go about it

and also provided him the tax and legal information on it

and he immediately backed out

he had some money saved and didn't want to invest in stocks or fds

but he also didn't want to pay 30% tax on it

so in the end he just put it all in some lic mutual fund + life cover scheme

which would pay him very little at the maturity but what can one do

when we have morons running this country

every sane country is increasing their crypto holdings

whilst our govt. is making it hard for ppl to even invest in it

andher nagri chaupat raja

[pawanjain]

Someone who wanted to use crypto but didn't just because he has to pay more when it comes to buy them which is common but ever since Wazrix got hacked the people got no other choice than paying a bigger price than the current market price. Also what are the best option to buy bitcoin without paying too much from the current price?

I believe there are only 2 ways to go through this situation. One is to pay the 30% tax and go through trusted exchanges otherwise look for other methods to evade tax.
Tax evasion is bad though and I don't encourage it but in case someone wants to opt it then they can either go for P2P methods or through Hawala.
Both of them are risky and might lead to losing the funds and so the better option is to pay the 30% tax itself.

[Bitcoin Smith]

so in the end he just put it all in some lic mutual fund + life cover scheme

which would pay him very little at the maturity but what can one do

when we have morons running this country

One who is controlling the finance only see the number in tax but they often fail to realize that by decreasing the tax rate they can increase the number of people participating in the crypto field thereby increasing the revenue generation overall. Which is why countries with low tax rates often get attention from rich and those country's economy will slowly starts developing from the investment and tax opportunity they create.

Someone who wanted to use crypto but didn't just because he has to pay more when it comes to buy them which is common but ever since Wazrix got hacked the people got no other choice than paying a bigger price than the current market price. Also what are the best option to buy bitcoin without paying too much from the current price?

I believe there are only 2 ways to go through this situation. One is to pay the 30% tax and go through trusted exchanges otherwise look for other methods to evade tax.
Tax evasion is bad though and I don't encourage it but in case someone wants to opt it then they can either go for P2P methods or through Hawala.
Both of them are risky and might lead to losing the funds and so the better option is to pay the 30% tax itself.

Unfortunately, there's a third one, stop buying bitcoin and that's what happened with the person mentioned in OP.

[IIrik11]

One who is controlling the finance only see the number in tax but they often fail to realize that by decreasing the tax rate they can increase the number of people participating in the crypto field thereby increasing the revenue generation overall. Which is why countries with low tax rates often get attention from rich and those country's economy will slowly starts developing from the investment and tax opportunity they create.

absolutely true

and 30 % tax makes no sense whatsoever on this

this is not gambling, this is not lottery, this is investing and calculative risk

they could have easily put it in the same capital gain tax as for stocks

which would have resulted in more people investing in crypto legally

more transparent transactions and more tax collected over gains in time

but i think the real reason why they don't like people investing in crypto is because

they missed out on the train themselves

and like kids mentality, if we don't win, no body wins

and our respected tax goddess, well she's just on another level

she even closed sgbs this year, did u know that, just because

gold price surged and she thought, no, we can't let people of india make money

[avikz]

Yes the current government doesn't want people to get into crypto because some old government officials and ministers think that crypto is dengerous for the economy. Also the banking lobby is consistently promotion anti-crypto campaign which are further scaring people away.

No wonder, any financially rich person wants to leave India at any cost. It's the mentality to blame. 30% tax is just a tool to scare people. Also government uses income tax notices if they find out you have dealt in crypto.

[Bitcoin Smith]

One who is controlling the finance only see the number in tax but they often fail to realize that by decreasing the tax rate they can increase the number of people participating in the crypto field thereby increasing the revenue generation overall. Which is why countries with low tax rates often get attention from rich and those country's economy will slowly starts developing from the investment and tax opportunity they create.

absolutely true

and 30 % tax makes no sense whatsoever on this

this is not gambling, this is not lottery, this is investing and calculative risk

they could have easily put it in the same capital gain tax as for stocks

which would have resulted in more people investing in crypto legally

more transparent transactions and more tax collected over gains in time

The real reason is explained above, it's the RBI and the one who controls the banking doesn't want the people to have an option to chose alternative currency that can end up backfiring them whenever they decide to let the inflation rate slid out of control. Indian currency is getting weaker over the years no matter who comes in power and one who realize this will stop stacking rupees.

Yes the current government doesn't want people to get into crypto because some old government officials and ministers think that crypto is dengerous for the economy. Also the banking lobby is consistently promotion anti-crypto campaign which are further scaring people away.

No wonder, any financially rich person wants to leave India at any cost. It's the mentality to blame. 30% tax is just a tool to scare people. Also government uses income tax notices if they find out you have dealt in crypto.

Banks not just from India but all around the world took the same stance that bitcoin is used by criminals and illegal activities but others evolved from the position while our government made no development at all other than collecting tax on it. These stupid tax policies keep forcing people out of the country and making many new rich countries for example atleast 30-40% of USE's rich person are Indians that gives us clear picture why we are still struggling with everything.

[M47AK16]

For me, best way to buy bitcoins will still be the same old school way. Buying USDT via P2P & converting those to bitcoin. This way, I hardly have to worry about tax as the amounts I deal in will usually be below 1 lakh so it's fine until & unless I get the deposits from verified sources. In P2P, usually regular merchants having offline shops make payments so that can easily be reported as friendly transcations to avoid tax.

[pawanjain]

Yes the current government doesn't want people to get into crypto because some old government officials and ministers think that crypto is dengerous for the economy. Also the banking lobby is consistently promotion anti-crypto campaign which are further scaring people away.

No wonder, any financially rich person wants to leave India at any cost. It's the mentality to blame. 30% tax is just a tool to scare people. Also government uses income tax notices if they find out you have dealt in crypto.

The government and RBI both are involved here and have brought anti-crypto policies so that people stay away from it.
They want to squeeze every penny of tax that can be collected from the middle class and so they have introduced 30% flat tax.
The rich obviously have their ways to evade this tax but the middle class still struggle with that.
Some of them have stopped buying crypto due to this absurd taxation policy.

It would make sense if we get good services for our tax paid but instead what we get is broken roads, worst hospitals and staff and corrupt politicians.
All of them join hands to suck the left over money with us and then use their power and their goons to threaten us.
Why wouldn't anyone think to leave India. What does India even offer for their citizens to pay tax.

[vino.gcs]

For me, best way to buy bitcoins will still be the same old school way. Buying USDT via P2P & converting those to bitcoin. This way, I hardly have to worry about tax as the amounts I deal in will usually be below 1 lakh so it's fine until & unless I get the deposits from verified sources. In P2P, usually regular merchants having offline shops make payments so that can easily be reported as friendly transcations to avoid tax.

It's definitely an option to take this way, but what about the problem when you have cash? I'd be interested in a solution.

[Bitcoin Smith]

For me, best way to buy bitcoins will still be the same old school way. Buying USDT via P2P & converting those to bitcoin. This way, I hardly have to worry about tax as the amounts I deal in will usually be below 1 lakh so it's fine until & unless I get the deposits from verified sources. In P2P, usually regular merchants having offline shops make payments so that can easily be reported as friendly transcations to avoid tax.

The usual problem comes while selling though which includes bank account freezing even if it's from verified p2p traders and the reason is explained in my other thread, Why bank freeze happens - Detailed version. People who don't want to face any of this issue will prefer selling directly to the exchanges but when we do the 30% is inevitable since FIU collects data from every exchange so it's a complete trap or just stuck with our paper money forever.