[ptrikha21]

1% TDS (Tax Deducted on Source).
30% Tax on Crypto earning with no provision for Carrying on losses/offsetting.
Now here comes another googly!

As per an amended provision, Crypto traders could face 70% tax on undisclosed gains.
Now the problem is that many of us here rely on our service provider to take out the Tax and supply tax statement. Plus we pay 30% on overall earnings(one mostly sells on profits but cannot offset losses).
So if we miss on something somehow, we pay 70%?

Well, isn't it kind of an official way of harassing many who have turned to Crypto for extra earnings?



Link :

https://cointelegraph.com/news/indian-crypto-holders-face-70-tax-penalty-undisclosed-gains

[Fergal]

Thanks ptrikha21, that sounds like a very strong penalty. Hopefully it won't negatively impact on the crypto market in India.

[Fergal]

Thanks for posting a popular link ptrikha21, sending ForumCoin now.

[ptrikha21]

Thanks for posting a popular link ptrikha21, sending ForumCoin now.

Thanks a lot Fergal.
The extra FCs are a pleasant surprise!
I kind of accidentally stumbled across this section.
However, it is my personal belief that we just do not share the link but also explain crux of what it says - kind of a brief overview.

[arunima]

I read somewhere in last year when IRS had warned Biance about the unpaid tax on the gains. So, the crypto traders have to disclose every gain the same way as they would do for other assets. If one is being fair and transparent, one need not worry. Just pay the regular 30 % This is a penalty for the undisclosed ones.

[ptrikha21]

Thanks ptrikha21, that sounds like a very strong penalty. Hopefully it won't negatively impact on the crypto market in India.

It would have an impact although it would be spread out and not hit immediately.
Overall, as compared to Dubai, Japan and even US, holding Crypto is not a favorable investment in India.

Yet, returns on some of the Cryptos mean that even with a 30% tax, one can hope to get good returns.
The biggest challenge is volatility plus lack of end use cases for many Cryptos.

-- 08 Feb 2025, 16:53 --

I read somewhere in last year when ... Just pay the regular 30 % This is a penalty for the undisclosed ones.

Somehow I can make out that as of now, Government is targeting Crypto companies and not the end users.
But better to check what all transactions need disclosure.