Yesterday we wrote that there are sometimes very contradictory voices from Malaysia when it comes to cryptocurrencies and blockchain. India is also such a country. There is now a law implemented which means that the government will tax cryptocurrencies.
That writes money control based on an official message from the government†At the end of last year, the country’s central bank already asked the government for a complete ban on digital currencies, but this was ultimately not implemented. An alternative was a 30% tax on transactions†It seems to be about a capital gains tax (capital return tax)which is often also around 30% in other countriesâ€
tweed tax
In addition to a capital gains tax, a 1% tax on income from cryptocurrencies, also known as “tax deducted at source”, is imposed. For example, if you get your salary in India paid in crypto, you pay 1% to the government, purely because it is paid in crypto. Regular income tax will probably be added on top of that.
Ook, losses cannot be credited, as with India’s betting regulations. The 30% tax on crypto returns will Starting April 1, the tax on crypto income will begin on July 1.
tback in time
tOh well, it’s a huge percentage when you consider that crypto should be naturally attractive to use. With a tax of 30% you automatically lead people back to the ‘system’ they came from, ie the banking system. In the case of India, that seems to be the intention. After all, the country has already considered a complete ban before, that must be for a reason.
CoinDesk has spoken with prominent personand from India’s crypto industry. Vaccording to Sumit Gupta, CEO from CoinDCX, a major exchange from India, for example, the 1% rate will affect both active tradersand as for the total tax received. The latter will probably be positive for the government. Unocoin-co-founder and CEO Sathvik Vishwanath mentions that it could be the noose for the crypto industry. It also appears that many requests from the industry have not been implemented. So back in time, for India.