Indian Government Clarifies Crypto Asset Tax Law.  Confusion cleared.  You can now freely trade cryptocurrencies in India.

Binance Shared: Crypto just became legal in India.  The Indian government has cleared confusion in the form of a crypto asset tax law.

Community Response:

Why shouldn't you pay tax? In the UK it is the same and, in the USA, too. And, it doesn't say you can't write off a loss against the gain in crypto only against regular income. i.e., it is separate. Good news.

If I get my calculations right. 30% of 1,000 USD is $300. I bet it should be on profits only right?

Both on profits & losses you have to pay 30%? Nope. You won’t get any profit write off if you are in the loss while trading crypto, which is not equivalent to paying tax on losses, learn the difference.

They haven't cleared confusion, but they made it clear crypto can and should be used only via decentralization.

This is not the best, but it is better than being banned.  It is similar to almost anywhere.  Spain is  26% tax if your crypto is more than 6000 euros and I think almost any country has something like this.

The 30% is too much, but great news for the world of crypto.

So, when BTC is down they legalize it, and when it’s up they ban it. So, next is China to legalize it.  I guess.

If we withdraw 1$ then we have given 30% Tax.  This is a normal tax slab not only for crypto.

This is still a proposal we have time until April 1, 2022 - until it is declared as a bill. Remember it’s a budget session. If this becomes a bill then 30% is way more, no consideration in losses as well.

Agree, but at least they have given a green flag to move without any hesitation. And I guess things and situations will be reconsidered.

Yes, you can say it’s a Green Flag but mind it, this also may be the way to flush out people from the market as the govt doesn't want people to be invested in crypto. I too expect that there will be some considerations during 2 months.

What if we lost everything since 2019 and gain profits(recovery) in 2022? Will tax be applicable?

Nope, you pay taxes on winning only.

You're taxed on every individual transaction that makes a profit. If you bought an asset in 2019, sold the asset later, and made a loss, then bought another of the same asset afterward and made a profit, they don't consider the previous loss as it's a separate transaction.

So, the loss isn't tax-deductible.

Now in April, it’s going to be legal in Pakistan.  Also crypto is the future.  Every country will be properly legalized soon.

Still, a lot of work to do. Got to push the government to reduce tax rates. One step at a time.

Finally, you can use a debit card to buy crypto - yay.

Very bad news. Big investors will either go to the stock market or leave the country.  The small investor will most likely put money in or maybe not.

This is the example of the brain drain society of India. Bro, we have to pay income only in our profit and every country have more than 25% Tax in Cryptocurrency.  So, please stop blaming your motherland.

Read papers before spreading misinformation. It's not only profit but in loss too.

You are not a trader so you wouldn't understand. Also, I can tell you lack knowledge of the economy and why you don't know how it's going to affect the volatility with 1% TDS. You shouldn't be comparing Indian infrastructure with another developed country.

They are introducing e-rupee and discouraging crypto with a 30% flat tax.

But that 30% tax is on Profit only. Not a discouragement, this is normal. It’s similar to the stock market situation in the early ‘80s.