According to post-tax data in India as of April 1, in the country bitcoin and cryptocurrency There was a huge drop in transaction volume.
As it is known, with the new rules, 30% tax will be charged on crypto earnings in India and the losses experienced by investors will not be deducted from the tax rate.
Effects of New Cryptocurrency Tax Law in India Beginning to Be Felt
The new cryptocurrency tax rules came into effect as of April 1, with the country’s parliament ratifying the 2022 Finance Law.
With the new rules, a 30% tax was applied to crypto earnings and it was decided not to deduct losses from tax rates.
With the development, as of April 1, Indian crypto exchanges experienced sharp decreases in transaction volumes. Aditya Singh, owner of the Youtube channel Crypto India, showed the declines in Coindcx, Bitbns, Zebpay and Wazirx, India’s four largest crypto exchanges, in his statement.
Indian Exchanges saw Volume drop after New Crypto tax rules became applicable on 1st April. pic.twitter.com/ay60tR692q
— Aditya Singh (@CryptooAdy) April 2, 2022
On the subject, a Twitter user made the following comment:
“The collapse of the perfect ecosystem we created in India has begun. Indian authorities should create a tax system that will support both the crypto industry and tax revenues. Many people make a living off of what they earn from crypto trading.”
Ashish Singhal, CEO and co-founder of crypto trading platform Coinswitch, said in a statement:
“A flat 30% tax that does not separate short-term capital gains from long-term gains and does not account for expenses incurred or losses incurred is incompatible with existing tax frameworks for other asset classes and is discriminatory.”
*Not investment advice.