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All you want to know about crypto tax rules in India from 1st April
As per the rule if you fall within the taxable limit which is less than Rs. 2,50,000 so you will still be charged 30% tax (plus cess and surcharge) from every income, transfer of virtual digital assets or cryptocurrencies – just like horse racing and other speculative trading or gambling.
You may neither carry forward nor set off your crypto loss, forward it against income under “any other provision” of the IT Act, or against gains in crypto assets. that if you gain bitcoin 1,00,000 and dogecoin may lose 50,000, then like other ‘asset classes' you get only Rs. 50,000 will not be taxable, but only 1,00,000 will be charged on profit, irrespective of the loss. Yes, crypto is no longer an asset class!
Apart from this, 1% TDS will be deducted in case you do more than 10,000 business in a year or you also receive a digital virtual asset gift of more than 10,000 amount. Now, the TDS limit will be Rs 50,000 per annum for specified individuals, including individuals/HUFs who are required to get their accounts audited under the I-T Act. The main purpose of deducting TDS is to track every single transaction. This TDS rule will be implemented on July 1, 2022.
A lot of crypto traders believe that they should not put crypto in the tax bracket of speculative trading because investing in crypto trading requires proper study and analysis. He says that if strict tax rules are implemented in India, then many crypto exchanges will shift from India and move to crypto-friendly countries like Singapore and UAE.
In addition, 30% of Tax Enough investors will start investing in Crypto Investing for other worlds. After all, what has put crypto into the gambling category?
Moreover, if you are trading crypto and your income is only Rs. 10,000, you still have to pay taxes and file returns regularly – that's why a lot of small investors are now shying away from investing in Crypt Invest – a lot of small investors have even withdrawn their money and used it in Asset classes like SIP and Equity is given.
In addition, it is not yet known whether crypto will be legal in the future or will be made illegal – so it is obvious that after these strict laws, now investors will be distanced from crypto and other digital assets.
Have you also done Crypto Invest? What is your view on this crypto tax?