The Crypto community in India is under huge hurdles because of high tax rules. And also people are confused about this 30% tax system.
On 1 Feb, Nirmal Sitharaman, finance minister of India, presented the Budget of India. In the budget, she allocated a budget for blockchain innovations and Crypto adoption negatively also.
Nirmala Sitharaman stated:
“Accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 percent”
The majority of the people are taking this statement of the Finance minister wrongly. Few people claimed that it will be a 30% charge that will be imposed on the transactions in crypto assets.
In actual reality, the actual meaning of this statement of the Finance minister, any income generated from the transactions that will involve the crypto will go through 30% tax, which means 30% tax on income not on the transaction amount.
Such types of confusion arise because of some YouTubers and news websites, which are not able to understand this statement of the finance minister but want to give news forcely.
This new rule is also associated with the 1% TDS on every transaction, which means a person who will facilitate any crypto transactions, will go through a 1% charge.
Under the statements, the government will not give any refund to the crypto users/traders in case of any trade loss. And this new rule will be applicable from 1 April 2023.
Criticism and Happiness in the crypto community
Due to such highly taxable rules, no one in the crypto community of India is happy. Because these rules are not better from any point of view.
The majority of the crypto supporters said that the government of India wants to bring a rule to keep the citizens away from crypto.
However, on the other side, many crypto traders shared happiness and said that this is a 100% official sign by the government of India to legalize the crypto industry instead of following any provision to ban Crypto.
Highest crypto tax Countries
To keep the citizens away from crypto investments, a country usually imposes high restrictions based rules and also highly tax rules.
At present, Japan has provisions to collect 50% of taxes from the income of a crypto investment. While Belgium imposed 33% tax and South Korea is standing at third position with 24% crypto tax rules.
In 2023, India will introduce this rule officially and this will impose a total of 30% Tax and it will stand at 3rd highest tax collector country from the crypto Industry, in the world.
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