Taxation in Cryptocurrency
Taxation is an important part that we all should full feel as per the government guidelines. There is no way that we should avoid it instead whatever is the liability it needs to be paid on time that too with proper calculation. Some countries are doing very good work in Crypto adoption and this is why they are coming with the tax framework which is easy for investors and the Crypto exchanges.
In India the taxation is little complicated and even the percentage is quite high which is why it is a demotivational factor for the investors in the country. Paying a huge 30% interest flat on any income through the Crypto is really big and because of these exchanges have gone through tough time. It is being approximately 10 months of the implementation for the tax rules in the country and in this period they have seen a major fall in the trading volume.
TDS is another sort of tax which is implemented effective July 2022 and as per these tax 1% is deducted with each transaction which is again on the higher side. The union budget for the next financial year has already been presented but there has been no discussion about the reduction in tax percentage which means we are going to deal the same way for another year. There are two possibilities that government might be considering. The first is that the government is not much interested to bring is and better environment to the people who deal in Crypto. The second is that maybe the government is not ready now to deal with the situation and because of these they are trying different ways to get more time so that they find themselves in better place after few years.
I just home that government take it seriously and Dubai is one of the country that is setting up an example where a great ecosystem is built that is very much support to the Crypto and blockchain. Some of the exchange founders from the India have also moved to Dubai. This is not good for the any country because there talent is moving out but when people do not get easy options available then it is obvious that they should be looking for something which can give them ease of doing business and also the opportunity to be something.
Thank you so much Stay Safe
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