Indians Must Pay 30% Crypto Capital Gains Tax On April 1st

Indians will begin paying 30% capital gains tax on crypto transactions after Congress passed the tax proposal. And it caused chaos and disappointment among those in the country’s crypto industry.

In addition to capital gains tax Indians buying or selling crypto are required to pay 1% withholding tax (TDS), as well as taxes on crypto gifts, which are non-deductible in case of loss. The crypto tax will go into effect on April 1. while TDS will begin on July 1.

Finance Minister Nirmala Sitharaman presented the proposal and brought it through the lower house of parliament. More than 20 members of the House of Representatives reacted strongly to the bill. It has criticized the lack of clarity on how cryptocurrencies are in the bill, and several members of Congress have said the crypto tax will “End this industry”

But Sitharaman replied by saying “There were no signs of confusion,” and we were “very clear that there was discussions whether we really wanted to regulate it to some degree, or really, or completely ban it,” she said, where the government taxed crypto because the crypto-currency itself was a “no-no sign of confusion”. people profit from it

She added that TDS was “more for tracking. It is not an additional tax or a new tax” and “TDS can always reconcile with all taxes to be paid to the government.”

India’s crypto industry has reacted wildly. By looking at the passage of the bill without amendments “More harm than good” and “will hinder the overall growth of the industry.”

“This is not conducive to the government or the Indian crypto ecosystem and is poised to do more harm than good,” said Nischal Shetty, one of the most prominent crypto voices in India and co-founder and CEO of WazirX, one of the crypto exchanges at WazirX. largest in india

“This can affect Indian exchanges. and lead to an increase in capital outflows to foreign exchanges.”

Sumit Gupta, CEO of CoinDCX, a prominent Indian cryptocurrency exchange, said: “Tax provisions can kill the crypto industry,” and Sathvik Vishwanath, Unocoin co-founder and CEO, said: “It is sad that the request (of their industry) has not been processed.”

“This will have an impact on traders. In particular, keeping 1% TDS will not only affect traders. but also including taxation We hope that in the years to come, the crypto industry will be treated like any other industry. related to investment,” said Vishwanath.

“The government does not accept any suggestion of the crypto industry to reduce the tax collection. But it actually made the tax collection rules tougher. make it tighter And perhaps it is almost impossible for day traders to carry out their trading activities in India,” he said.

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