Is Crypto now legally recognized in India ?

in LeoFinance2 years ago (edited)

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Breaking news from budget 2021

So, after lot of anticipations, today stance of Government of India on legality of crypto showed some positive signs in the 2021 budget. What is your reaction? I felt like the government has played real smart by putting the fireball in our pocket – take tax without worrying about what happens to investors. This is how it reads:

Any income from transfer of virtual digital assets such as cryptocurrencies, non-fungible tokens or NFTs will be taxed at 30 percent. Also, loss from sale of virtual digital asset can be set off only against the gains from sale of virtual digital assets. Cryptocurrencies as a gift will be taxed at the receiver’s end.


So, your loss is only yours and you will be able to set off only if you make some profit. But what happens if one wants to exit and sell on loss, because of some emergency need? One should not sell in such conditions. That means, you should invest that much that you can afford to loose ( a popular common perception that everyone agrees) – if you make profit, pay tax and walk away clean.
Interestingly, the Central Bank plans to launch its own digital currency in 2022-23, as investments in cryptos turn hot in the country. There are no details on how this digital currency will make our investments hotter but some say, it’s a sign to indicate that, crypto is not going to be accepted as legal currency but only as an investment and this new digital currency will be the legal currency of India. Hopefully, we will have more details on this new digital currency later this year – if it will be suitable for investment or its only going to be used for transactions.
Interestingly the government did foresee the potential of NFTs – which indicates, this niche segment is going to boost a lot. But is there a catch here – NFTs selling in our currency? Because the NFT selling in crypto would fall into the same clause, why did the call out the NFTs specifically? They definitely think, there would be some platforms where NFTs would sell in legal currencies and they do not want to lose tax on that.
Many people are celebrating this on social medias – [CZ] ( Binance tweeted about it saying “Crypto is legally recognized in India, with a 30% tax.”

But did the government say so? Not yet - it’s all people’s perception. This was my response to CZ :

The government definitely has taken some time to see how it goes, till it comes up with it’s own digital currency. Until then, its all as we explore. I am personally a bit disappointed – if they consider is as an investment, then why don’t they charge the same tax to other investments? Even people do similar or more profit from shares / equities, why there is a differentiation? I am already paying more than 30% tax on every penny I earn – paying another 30% from gains is literally discouraging honest tax payers to try their luck – especially small investors like us.
This is how centralization can always control decentralization – at the end, you have to fall back to regulators to enjoy that profit.


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Mixed feelings about this. Good that crypto is now officially legal in India but 30% tax? Come on... This is outrageous extortion.

Not a legal tender yet.....taxing any income in India doesn't gurantee it to be under legal tender

They are playing safe - till they come up with something. Everything in the name of democracy.

This is going to be a hot topic for leofinance today....😉....interestingly, this is first one I came across 🤫

I think selling on loss means you still have to pay the tax of 30%. I think this is generally bad. I think there are so many questions about the legalization of crypto in India. On the surface, it feels like a good thing. I mean it's a step in the right direction, I hope some of these terms and conditions are later relaxed.

@tipu curate

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I don't think, they will relax anything later - rather they will come up with more bad news after they lunch their own currency. May be that is not ready, so they would have thought to enjoy the free money - the massive tax that comes free. And give it free to people and make them less productive to give them votes.

For govt Crypto tax is just a way to rais money to buy votes so they can rule on the nation for next 10 years.

True - they have nothing for the honest tax payers in this budget.

This is very good news for the people of your country. The issue of 30% tax is a big exaggeration

This is good news that it's a legal in India.

Not legal, this us just an assumption

Its good to hear that crypto is going to be legal in india.
That's a pleasant news for crypto and nft lovers. But huge 30% tax would be really a big pain.
Government would make huge profit by taking big cut from crypto holders in the farm of tax. Investors will get rekt.
I hope the government of india will consider it to lower the tax in future planning.

Thank you.
Have a nice day ahead.

No one said, its legal - they are playing smart.

It's neither good or bad i Guess. And that 30% tax. The memers are right on this "yours profit is us profit but your loss is only yours loss". What's your view on this @sanjeevm sir.

I would say, it's not fair - why not charge same tax on gains from shares / equities then ?

Perhaps it's because of the earnings.

I have mix feeling about this news. Crypto legacy good for India cryto users. But 30% tax is so big I believe.

Ya, and look at how they spend the money - all kind of free schemes - dirty politics.

I am very happy that your government has done a good job. It should all be legal. There is a similar debate going on in the parliament of our government, but it is a good decision to keep corrupt currency

Playing smart being the operative word. This will be the subject for much discussion I'm sure

At the end, you really cannot enjoy the money without abiding to centralization - not at least in white way.

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