Hello and Everyone
Every country has certain laws for the citizens to follow. Every country follows this practice to keep their citizens aligned on their practices but not necessarily because sometimes the government itself creates new laws that are not favorable. Sometimes a change is also required in the laws so that it can be favourable for the citizens. It is govt's responsibility to bring citizen-friendly laws and also that can be a good value addition for the country.
The crypto community in India is going through a tough time because of unfavorable tax laws in the country. The government implemented these rules effective last financial year and since then we have seen how the market in India has been affected. It is because the rules are not good and the tax is also not favourable for the crypto community. For example, any income generated through the crypto is taxable at the rate of 30% which I think is very high. The community has been talking about these crypto laws on social media but since the beginning till now, no action has been taken by the government. It is hard to believe that the government is not aware of these points but looks like they are ignoring it for whatever reasons.
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The other part related to crypto law is that they do not allow the loss to set off. It means if you are earning any money through Crypto then you are liable to pay taxes at the rate of 30% but if you lose money on Crypto investment then comment will not take the tax but they will also not allow the adjustment. This is not a fair practical because if a person loses a lot of money then the profit also has to pay the tax to the government from the pocket. How can a government take the tax even if the person has not earned anything this is not the right rule and this type of law is surely not favourable at all.
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There is another part that we can't ignore which is the tax deducted at source. This is one of the parts that is applicable on all the exchanges following Indian crypto laws where every sale transaction will fall under TDS at the rate of 1%. It means the capital will be reduced by one per cent with each trade and this is a very big percentage that reduces the capital a lot. The government says that this is not a tax but the reality is it is reducing the capital with each trade which is not at all good for the traders in the country. The interim budget was also shared this year and it was expected that the government would bring some changes in the rules but unfortunately, that did not happen and we don't know if this will be happening in the complete budget this year.
Everyone is affected in the country who is dealing in crypto and because I am part of the crypto I am also affected because every income generated from crypto is taxable. They do not follow any slab which I think is not fair because the government has applied rules similar to the gambling platform and Crypto is not gambling instead it's digital money or we can call it a digital asset.
This is my participation post for Initiative: April Monthly Prompt
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Thank you so much
Stay Safe