As new crypto tax rules kick in tomorrow, should you book profits?

economictimes.indiatimes.com:

Calling it a historic moment in the evolution of the Indian crypto industry, Shivam Thakral, CEO of BuyUcoin said that this move will make the crypto market more organized and disciplined. «Like every new law, crypto tax laws are also subject to testing and recalibration to protect the interest of all the relevant stakeholders of the industry,» he added.

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The government clarified that no deductions in respect to any expenditure or allowance will be allowed while computing such income except the cost of acquisition. Also, gains from the sale of one crypto asset can not be offset against the loss in another. Avinash Shekhar, CEO, ZebPay said that as capital gains rates range between 10-20 per cent, it makes sense for investors to sell their crypto and book profits as their profits will be taxed at a lower rate. «Post March 31, there will be no set-off of crypto investment losses against capital gain. Hence, investors can make use of tax-loss harvesting to reduce their tax burden. They can buy the same assets in the new fiscal,» Shekhar said. Although not everyone is concerned about the new taxation laws coming into place. Hitesh Malviya, founder, itsblockchain.com said: Crypto is an emerging market. The market will go through a couple of major swings in the near future. Investors should keep their positions in the market as long as they can enjoy peak profits. «Value investors should not be worried at this stage and they should keep holding their positions for a couple of more years. Tax will be applicable only when they exit from positions, so it’s better to exit at peak