ETMarkets Conclave: Crucial aspects of taxation and crypto in India

economictimes.indiatimes.com:

The 30% tax on cryptocurrencies has left many bewildered, for the lack of clarity on certain provisions but has been equally welcomed by the crypto community as an affirmative step. Provisions like 1% TDS, or whether to nullify the losses in crypto against the profits earned certainly needed much more clarity. Meyyappan feels that the taxation has targeted a set of companies, and hasn't worked upon the taxation for individuals, not detailed on the valuation of gift tax, and how TDS would apply to various stakeholders.Underlying reasons for the high crypto tax slab

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Anoush finds the high tax slab of 30% on cryptocurrencies valid for a few important reasons. The government has imposed the tax with the awareness of the tremendous profits that the retail investors have reaped from their investment owing to the high volatility in the prices of digital assets like bitcoin. The sector precisely attracted a lot of investors during and post-pandemic when people were eager to diversify their portfolios. Meyyapan, on the other hand, believes that the 30% tax slab has been levied due to the government’s perception of cryptocurrencies as casual gambling income and the entire thing as speculative trading, where digital assets do not have any intrinsic value whatsoever. Crypto transactions that involve a multi-step process of converting crypto into INR to crypto to a stable coin also give an impression of large volume of transactions. Meyyappan quipped that even the simplest of crypto transactions takes one through the entire process and this is where clarification is needed between the