20% More Tax on Cryptocurrencies in India? Says Who?

An MP has urged Finance Minister to raise the taxation from 30% to 50%

The Indian Finance Ministry has recently imposed a 30% crypto taxation on incomes from the transfer of cryptocurrencies and all digital assets. After the announcement, Indian crypto investors and crypto exchange owners took to social media to express their concern and urged the Finance Minister to reconsider the high taxation.

News: Now the whole crypto taxation talks are taking a steep turn, thanks to the Member of the Parliament in Rajya Sabha, Sushil Kumar Modi. During a recent TV live, he urged Finance Minister Nirmala Sitharaman to raise the taxation from 30% to 50%, a menacing 20% hike. This has left crypto investors in a panic.

Sunil's Stance: During the conversation, Sunil has proposed a 50% taxation on cryptocurrencies. He added that his pitch is solely to discourage Indians, especially, the young population, from investing in the crypto market.

According to him, cryptocurrencies are a form of gambling and should be removed before it takes a bigger toll on the Indian population. He highlighted that the idea of 40-50% crypto taxation is very common in countries like Japan, Germany, Australia, etc.

From his point of view, Indian crypto investors are highly attracted by the profits in the decentralized market. Citing last year's growth, Sunil said that Bitcoin's CAGR was 115% and Ethereum, 30%. Therefore, for people who really make an income from cryptocurrencies, the current crypto taxation is easy to manage.

How Indian Crypto Regulation Works: Last month, the Indian Finance Minister has announced a 30% tax on any income from the transfer of virtual digital assets, specifying that no deductions and exemptions will be allowed.

Besides the 30% crypto taxation, India is slated to introduce a 1% tax deducted at source for every crypto transaction made from July 1.

The most shocking revival came in late March when the Finance Ministry clarified that Indian crypto investors will not be allowed to offset gains from one cryptocurrency against losses from another.

What is Investors' Stand: According to an opinion poll by LocalCircles, one in two Indians do not want cryptocurrencies legalized in the country. They are also interested to invest in India's own digital currency which is expected to be rolled out in the future.