Starting April 1 this year, and despite the crypto sector’s efforts, cryptoasset gains in India will be taxed at 30% – the highest tax bracket, the nation’s Parliament confirmed today. The tax rate on stock trading, however, is between 0% to 15%.
From now on taxed the same as lottery winnings, all “virtual digital assets” – from bitcoin (BTC), over airdrops and crypto gifts, to NFTs – fall under this latest tax decision.
Per an earlier report by the Business Insider India, the country’s crypto investors and traders will have to keep an eye on several provisions that will affect their 2022-2023 financial year:
- All crypto profits made during the year are subject to a flat 30% income tax
- cryptoassets that haven’t been sold – hence the gains were not ‘realized’ – will not be taxed until a portion of it is sold, even if the asset’s price has increased since the time it was purchased;
- After accounting for all crypto transactions made during the year, the tax will not have to be paid if there is an overall loss without any profits.
- Crypto-earners can declare all or most of their income as business income. However, there is no way to deduct business expenses.
- Crypto profits will not be permitted to be used as capital gains. This is subject to a 20% surcharge.
- there is a 1% tax deduction at source (TDS) on all crypto transaction redemptions, which are to be deducted “presumably by the crypto exchange” the investor uses, said the report – therefore, the TDS is deducted upon the entire transaction value even if the investor makes a loss.
This last will “nibble away” at one’s capital, noted the report, citing industry players, such as Nithin Kamath of the ZerodhaTrading platform
Since February, when the taxes were proposed, the crypto industry has been actively fighting against this bill. However, as attempts to ease the provisions have failed the case could still go to the Supreme Court.
Indian Crypto Tax Move
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Source: Crypto News