No matter how much we earn tax will follow us
Recently there was an announcement from the Indian government about banning international cryptocurrency exchanges. Though I did not see the official news yet I did see some articles online that talked about this. This news created a small panic among many people who are using Binance for their trading and other activities. About a year back there was an announcement that there is a 30% tax on the crypto earnings and there is a 1% TDS on all the transactions. This created a big impact and many Indian exchanges had to lose their support from the international exchanges.
Starting from this news, all the Indian exchanges are now providing all the KYC data to the government and most likely the government will know who is trading in crypto and how much they are earning in crypto. This is just the first step. I believe when they tighten the visibility, they might start including the tax amount automatically if the Indian exchanges provide enough data to them. It is also believed that after this news came almost 95 percent of people have shifted to foreign exchanges and that can be one of the reasons why the government is now after the foreign exchanges. They are currently requesting data from foreign exchanges and if they refuse to give data but still accept KYC from Indians, then there will be a ban and most likely exchanges like Binance may not be accessible for Indians. It is good to take the funds out of the exchange if possible.
The government is doing all these things just for the sake of bringing regulations in the crypto transactions that are happening. Most likely all the crypto transactions should happen under the visibility of the government so that they will have some control over it. They also see this as a convenient facility to get some additional income. No matter what we do, taxes will always follow us.
The biggest problem for crypto investors is the clarity on this particular thing. If we are earning some income from crypto and if we pay 30% tax on that, then are we good or should we do something more? This is the biggest question for everyone. Some people are also looking for loopholes to find out if they can mitigate this tax completely. There is also a possibility where people might find a way to evade this tax completely and that is why they prefer using a foreign exchange. I'm wondering how the government could do something if these transactions are P2P. There is no clarity yet on that.
For people in India, the problem is not just with Taxes. It is mostly the lack of clarity on what needs to be done even if someone genuinely wants to pay taxes and still use crypto. Some people say that it is enough if we pay 30% tax on the crypto earnings and 1% TDS on the transactions, but a few say that on top of the 30% tax, we might as well have to pay the GST. This information is not clear. But as the title says, no matter how much we earn, tax will always follow us. The point is not about evading taxes but about finding the right way to pay the taxes.
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there is a trend on twitter about it, hopefully they will lower the tax, 30 % is way too much.
I dont want to say it that loud but Im lucky enough to live in a country that really dont give a sht about crypto, there are mayor corruption problems to worry about that no body cares so taxes is not an issue for now and I have always thought about using crypto on a daily bases specially now with Hive but then its pointless if nobody use crypto locally, crypto was no intend to pay taxes its the total opposite, makes me mad, hope ppl wake up and start using more crypto as a mean of exchange 💪
What country is it by the way?
Maybe when more people start using crypto, problems might start surfacing. Crypto definitely affects the current economy of a country. Especially when people evade taxes.
Panama, down here ppl know almost nothing about crypto, they have heard of Bitcoin but I bet 90% of the population have no clue what it is, just the name of Bitcoin
It's the same in most of the countries. Even in India it is hard to make people understand crypto.
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The government are not doing this to protect the intrest of People. They are only after the tax, so they may have more money to spend
They think that they are protecting the people with all these restrictions but it is not true.
The government keep sucking the people.
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I think they should work more towards providing more clarity on how crypto taxes work as it is evident that not everyone is trying to evade taxes. Banning exchanges wouldn't make much difference as users will always find a work around or alternatives to keep exchanging crypto to fiat or vice versa.
There is definitely a work around for all the problems. People will find one.
I myself have heard this news in many places that exchanges are being banned in India and we have also heard that whoever is using crypto currency there will have to pay 30 percent tax. So this tax is high there government should reduce it so that more people can use crypto.
Yeah if they reduce the percentage, I'm sure people will start disclosing this and would not try to evade taxes.
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This year is going to be much harder for the crypto investors. Let's hope for the best. Let's see what will happen with the decision.
Yeah they are saying 2025 can be a year for bull run but with these restrictions, even if the bull run happens, I'm not sure how this will be useful.
I have read it also about government collecting 30% tax on crypto to me there intentions about putting regulations is good but the fact is that the tax price is too much some earn only little and removing 30% is like a waste effort compared to channeling there effort to other business. They should collect like 5-10%. I think the India government only want to discourage people from crypto.
I would say even if they allow people to disclose crypto income the same as their regular tax slab, people won't be unhappy. Only if they say flat 30% it is a problem.
This is absolutely correct. The government should bring in more clarity if they want individuals to pay taxes.
How difficult can it get for the government to appoint 100 crypto experts in every major city of India.
Yeah I guess the current experts are all outdated and they don't see the big picture. They have non-experts guiding them I guess. That's why they come up with terms like private cryptocurrencies and public cryptocurrencies.
If we should look it from another angle, tax is also good as it aid the development of the country only if the government are wise
Yeah the last line is very important. Only if the government is wise. Otherwise it is a waste.
For every country that has developed, one of the things that has helped them is tax collection and not only that but also how they make use of it
Collecting tax is just one thing. They have to use it wisely.
When you think of how taxes are designed, it's really discouraging.
You get taxed on what you earn, you get taxed when you spend that money that has been taxed, if you give it to a friend, they are taxed again on that money. It is all designed to go back to the government in the end, and to suppliment it all, they just print more.
And what do they use it for? To buy more nukes that will never be used, to fund more wars in other countries, and everyone who contributes their hard earn money to forced programs like social security will never be able to use that money as it won't be there when they need it.
Well said. 👏