{"id":5827,"date":"2022-07-22T01:35:04","date_gmt":"2022-07-22T01:35:04","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=5827"},"modified":"2022-07-22T01:35:05","modified_gmt":"2022-07-22T01:35:05","slug":"indias-finance-minister-says-punitive-crypto-taxes-will-remain-in-force","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=5827","title":{"rendered":"India&#8217;s finance minister says punitive crypto taxes will remain in force"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>Local media outlet Financial Express reported that the Indian government has no plans to reduce taxation on crypto transactions.<\/p>\n<p>On April 1, India implemented a 30% tax on income gained from cryptocurrency activity. More recently, lawmakers imposed an additional 1% Tax Deducted at Source (TDS) rate.<\/p>\n<p>Exchange trading volumes have taken a significant hit as a result, with WazirX reporting a year-on-year decrease of 74% as at June 30. In a recent survey, 83% of respondents said the tax measures had impacted their trading frequency.<\/p>\n<p>However, in response to calls to ease the tax burden, Minister of State for Finance Pankaj Chaudhary said:<\/p>\n<p>\u201cThere is no such proposal under consideration.\u201d<\/p>\n<h2>Uncertainty reigns over the future of crypto in India<\/h2>\n<p>Recently, the Reserve Bank of India (RBI) renewed talk of a crypto ban, citing the destabilizing effects cryptocurrencies pose on fiscal stability. Finance Minister Nirmala Sitharaman supported the motion.<\/p>\n<p>This incident is the latest in a long line of toing and froing on the legal status of cryptocurrencies in India. In April 2018, the RBI imposed a crypto ban to protect consumers and adhere to money laundering rules. This was later overturned by the Supreme Court, which deemed the ban unconstitutional.<\/p>\n<p>Since then, officials have given vague and mixed messages about their intentions. Commenting on the imposition of a 30% income tax on transactions, WazirX co-founder Nischal Shetty viewed the situation optimistically, saying the move effectively legitimizes digital assets.<\/p>\n<p lang=\"en\" dir=\"ltr\">Today\u2019s budget has ensured a very bright future for Indian Crypto ecosystem<\/p>\n<p>A few notable outcomes:<br \/>\u2013 Government has legitimised industry<br \/>\u2013 No more fear to BUIDL<br \/>\u2013 Everyone can participate<\/p>\n<p>Over 1188 days of #IndiaWantsCrypto<\/p>\n<p>It\u2019s been worth it!<\/p>\n<p>Next, let\u2019s Build For Crypto \ud83e\udd1d<\/p>\n<p>\u2014 Nischal (Shardeum) \u26a1\ufe0f (@NischalShetty) February 1, 2022<\/p>\n<p>However, it appears as though the RBI and Sitharaman have not given up on actioning an outright ban.<\/p>\n<h2>Minister said crypto taxes are high to discourage participation<\/h2>\n<p>In response to the tax policy, some crypto exchanges had called for tax reductions, citing significant falls in trading volume during an industry-wide liquidity squeeze.<\/p>\n<p>Sathvik Vishwanath, the co-founder of UnoCoin, commented that \u201cno one is getting spared,\u201d as traders, medium and long term investors are all impacted by the punitive measures.<\/p>\n<p lang=\"en\" dir=\"ltr\">It is too much for intra day traders to pay 1% TDS, it is too much for medium term investor to pay 30% flat income tax, it is too much for long term HODLer to not take loss inputs. No one is getting spared! #reducecryptotax #faircryptotax Day-169 #IndiaWantsCrypto @unocoin<\/p>\n<p>\u2014 Sathvik Vishwanath (Unocoin) (@sathvikv) July 20, 2022<\/p>\n<p>Reacting to this, Chaudhary explained that the RBI seeks to keep the current taxation policy as it is to discourage users from participating in \u201crisky\u201d transactions.<\/p>\n<p>The central bank maintained that engaging in cryptocurrencies is fraught with \u201cpotential economic, financial, operational, legal, customer protection and security related risks.\u201d<\/p>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/indias-finance-minister-says-punitive-crypto-taxes-will-remain-in-force\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Local media outlet Financial Express reported that the Indian government has no plans to reduce taxation on crypto transactions. On April 1, India implemented a 30% tax on income gained from cryptocurrency activity. More recently, lawmakers imposed an additional 1% Tax Deducted at Source (TDS) rate. Exchange trading volumes have taken a significant hit as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5828,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-5827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5827"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5827\/revisions"}],"predecessor-version":[{"id":5829,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5827\/revisions\/5829"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/5828"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}