The Indian Crypto Bill has always in the talks for a really long time for sure in the global Crypto community. The number of people from India who are involved in the Crypto world is really huge, for instance just in the year of 2021 about 20 Million people hopped onto the Crypto world and became new investors in it from India. The Indian government has always been too keen into this whole scenario as a crazy amount of financial activity is involved in the sector and scondly the tech behind is looked as being the next big thing in the coming days as well.

For a long time people were in a big confusion that is Crypto legal or not in the country as there was never a clear clarification on that topic from government's side, but recently with the announcement of the Annual Budget a " CRYPTO BILL " was included in it, to which people has mixed reactions.

What's in the CRYPTO Bill 2022 ?

Basically the activities related to Cryptocurrencies have been introduced to taxation which the were not subjected to earlier. The taxation works as follows -

For Trading

• 30% Flat Taxes on Profits earned

Simply put any profit you make while trading cryptocurrencies, be it futures, spot or any sort.

• 1% TDS ( Tax Deducted At Source ) for every transaction

This is another kind of tax levied for every single transaction in crypto based on the funds involved 1% TDS is deducted. The purpose of TDS is basically to track the transaction which provides the data to the government in case of.

• No Loss Setoffs

Unlike the loss setoff you are allowed to do in the stock market, in the case of crypto profits the governments says the other way around.

---

For Mining Cryptocurrencies

• Nearly Same as the tax system for trading but with a TWIST -

The taxation for mining is just as same for mining as well but if and only if you withdraw your earings out as soon as they hit your wallet after mining the coins there won't be any tax implications apart from the 1% TDS.

BUT

if you decide to hodL the mined coins in your wallet and wait for better prices to sell your mined coins then they will be subjected to the same taxation as TRADING, i.e. 30% flat tax on profits, 4% CESS and yeah 1% TDS is there regardless.

---

src

IMPACT

There are mixed reactions as I said in the beginning so there is some positivity to cherish as well from the vastly negative overalls is how I would put it.

Firstly to talk about the positives I would say that, bringing up a Crypto Bill does suggests the stance about Crypto in the country in a positive direction rather than the banning it altogether which was a prominent thing in the past for sure.

And now if you would look at the small scale investors (which is a majority in India), it would be quite very difficult for them to firstly navigate through such complexities in order to comply with the tax rules and hiring a C.A. won't be viable as the profit margins will be made even more slim after the taxes get deducted off their profits. All of which might see a lot of people quit crypto as a result.

For whales it might not be such a big issue, yeah their profit chunk would take a hit but they can deal with it unlike the small scale traders for sure.

---

src

CONCLUSION

There's still a hell lot of confusion in the air about this entire thing as far as the implementation is concerned because there are a ton of loopholes that one can point out. Yeah, nothing is perfect right from the begining for sure it will take time and get polished. But the positive intent from government is somethinh to cheer about as well.

All in all there are too many things to talk about this bill and I'm sure I would've missed a lot on intricate details as well but I've tried my best to give you a big picture about how things stand right now.

---

---

---

Posted Using LeoFinance ^Beta