India Crypto - India Finally Kinda Legalizes Cryptos By Imposing Tax On Crypto Profits
Hello Friends,
Since more than a year, there were speculations that India will ban Cryptos and then there were news on the other side telling that, Government will regulate the Cryptos based on Prime Minister Narendra Modi's comments.
Now, there is official news announced by our Finance Minister Ms. Sitaraman that, the Crypto gains will be taxed at flat 30%!!!!
That is definitely a welcome news for all the Crypto traders in India as that kind of means legalizing the Cryptos since the tax is being levied on the earnings from Cryptos.
But, that also brings few new questions with Crypto Bill not yet discussed but tax will be levied, here I go with the details.
Along with Cryptos, even deFi, NFTS will also attract tax as per the confirmation by Finance Minister and the booming digital assets will be like hot cakes now after!!!!
Taxing means Cryptos legal in India?
That's the question being asked by Indian Crypto traders and even the opposition parties in India.
The answer by Finance Minister is that, the Cryptos including Bitcoin, Ethereum are not legal tenders, but, since the people are making profit, there needs to be a tax on this!!!
So, we still have to wait for the Crypto Bill to be proposed for the status of regulation, for now, the Crypto trading will be official if not legal and there won't be ban until further notice and that also means, the Banks can't reject the Crypto trading anymore using their accounts!!!!
Now that is something which creates positive energy among the Indian Crypto traders.
Back in October 2021 itself, it was estimated that India has more than a billion Crypto owners and with this positive news, we can expect that number to go up.
With growing number of Unicorns in India, the startups can get funding from Cryptos as well along with the subsidies or tax rebates the Indian Government is giving and tat will automatically increase the number of Unicorns in the coming years.
The impact of 30% tax:
No doubt this will be a positive news for crypto lovers, but, 30% tax on gains means a bit more in these difficult days for Crypto, but the good news even in that is, we only need to pay when we make some profit, NOT when we trade, so, the taxation will be on the amount earned as profit.
While these are still early days of regulating Crypto in India, the efforts are being made to collect the data related to Crypto trading by Indians and there are multiple discussions are also happening on getting inputs about regulating Crypto and we all hope this taxation on Cryptos will be a positive vibe in regulating the Cryptos and we can freely trade the Cryptos without any fear of getting our bank accounts banned.
The Government has also made it clear that, in the financial year 2022-23, India will also see the Central Bank Digital Currency (CBDC) being introduced and that will be the legal tender.
Now, there are concerns that, the introduction of CBDC will make Cryptos less popular, there are positive feedback as well with regards to CBDC as those can be used as stable coins to buy Cryptos since this taxation declaration.
When the new taxation starts?
While there is still lot of time for this to be implemented as this amendment will come into effect from 1st April 2023 only with a new income tax section 15 BBH will come into effect by that time only.
That gives ample time for the people if they want to transfer the digital assets without incurring the tax and want to exit, but, that's unlikely given the fact that, the holding will always be more beneficial and that should ensure people continue to hodl, trade and ready to pay the tax even beyond 31st March 2023.
let's all enjoy this news and time to seriously acquire more Cryptos and earn more profit and pay tax, it's that simple now :) isn't it?
Thanks and Have a good day :)
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