Crypto Tax in India is getting circulated rapidly all over the globe as now they are officially applicable/validated across the Indian Nation. However, these recent taxes and laws seem incredibly harsh for every average retail crypto trader.
India is now the first country to impose heavy taxes on crypto. But unfortunately, their view is the same as treating cryptocurrencies investing/Trading with the Batting/Gambling application or industry, which further disappoints every Indian crypto-friendly people out there.
Let’s dig in more and find out all the details about the Indian Crypto tax and how it is very different from any other random country’s crypto laws.
So what are those new Crypto tax policies to look at before starting crypto investing or trading in India?
Flat 30% Tax
Suppose you have generated any profits starting from 1st April 2022, whether small or big. In that case, it doesn’t matter in which tax slab you come from, it doesn’t matter if your profit is from Trading, investing, or any other Crypto source or whatever it is; YOU ARE BOUND TO PAY 30% FLAT Crypto Tax in India!
1% TDS on Every Crypto Transaction
TDS is often known as ( Tax Deducted at Source ). You will have to pay 1% of every transaction you make via trading/investing on crypto as TDS which is applicable from 1st July 2022. Remember that your TDS charge would get locked under exchange or transaction details, and you will be able to claim it when you file your income tax report ( ITR ) after the financial year 2022.
So, it’s a kind of refundable thing mainly to impose to know how many transactions this particular user is doing. that was an intelligent move by GOI. But, still, a 1% TDS charge is not a negotiative amount for retail Indian traders and investors.
No Set-off against Losses
Everyone in the Indian stock market must know what I mean to say. This seems very problematic in these situations: If you sell one of these assets and have a capital loss, you won’t be able to set it off against other income or carry it forward. So, if you lose money on investments in digital assets that don’t exist in the real world, you can’t use that loss to lower your taxable income and lower your income tax bill.
28% GST on Crypto Services
Flat 28% GST is now applicable to any crypto services, mainly trading fees and exchange services. However, the exact information is yet to be released, so stay updated on CryptosharX social media accounts!
Parliament on Crypto Tax in India
Further now, Let’s see what our minister of parliament wants to say regarding a 30% tax on crypto.
One of the parliament ministers suggested and advised in front of LokSabha that Japan has over 55% of tax, the USA has 37% tax, and India is still imposing only 30%; therefore, India should set a lot higher around flat 50% tax on crypto having said that a lot of other countries have imposed a lot higher tariffs & taxes.
watch this clip :
Let’s decode what the minister said and find out whether these countries are charging this particular amount on crypto gains or not? Then, I will be writing another brief on the article to give you more insights into how you can calculate crypto tax as an Indian citizen hassle-free!