Crypto Miner and Trader Going to be Zero in India from April because of this
India proposed a law that will force people who trade, deal, and hold cryptocurrency to pay tax on them. This is not good news for the cryptocurrency community in India. The cryptocurrency community asked the government to relax the rules and not stick to 30% tax. However, the government didn't budge and the tax will kick in from April 1st, 2022.
How crypto mining and trading indirectly banned in India
India is one of the hottest countries for cryptocurrency mining and trading. This year, bitcoin trade in India surpassed $5 billion, and the crypto mining industry is also on the rise. However, the recent tax laws in India are likely to drive investors away from crypto mining and trading. The Indian government has proposed a new law for taxing virtual currencies. The law aims to impose a tax rate of 30% on crypto mining and trading profits. This new law is going to come into effect from April 2022.
Crypto Miner and Trader Going to be Zero in India from April because of these two reasons
India’s cryptocurrency tax kicks in from April
- As of April 1, a 30% tax will be imposed on all forms of virtual assets or digital assets (VDA) that are traded at a profit. A 1% TDS will be deducted from all forms of VDA each time they are sold, although the TDS cannot be used to offset other business expenses as it will only be held back until the end of the year when it comes time to pay taxes.
India’s Finance Minister has reiterated that the existing targeted tax does not give VDA legal status and is not comparable to any form of foreign fiat currency. From April this year, cryptocurrency gains will be upheld to 30% - which is the highest tax bracket in India - making lottery winners and high-salaried workers from more traditional careers look enviously upon crypto investments!
India won’t allow offsetting loss on one crypto with profit from another
-The Indian government announced Monday that individuals will not be permitted to offset their losses against profits earned in other cryptocurrencies. The country’s proposed taxation law of virtual digital assets doesn’t include an option for individuals to write off a certain amount of loss from one asset against profits gained on another, Shri Nirmala Sitharaman, Minister of Finance and Corporate Affairs said in a statement. Jeetendra Sharma, the founder of India's largest cryptocurrency exchange Zebpay, criticized the decision Tuesday as “detrimental” and “regressive” toward encouraging the growth of digital currencies like bitcoin within the country.