Cryptocurrency is popular across the world, including India. Just like any other country, more youngsters are showing interest in investing in cryptocurrency.
In fact, after huge profits in the year 2021, people are expecting a positive start in 2022 as well. With good knowledge about cryptocurrency and the present market, it gets easy for people to invest in cryptocurrency. You can click on oil profit to learn more about bitcoin trading.
Recently, during the budget announcement for the next financial year, Finance Minister Nirmala Sitharaman has announced the launch of digital Rupee in the next financial year. Along with that, she even announced that there will be a tax on the gains made from crypto investments.
The surprising part was the tax slab. India is going to charge a 30 percent tax on any income that is generated from cryptocurrency investments and trading. That is a very huge slab. Now the million dollar question is, “ Is it logical to invest in cryptos in India post 30 percent tax?”. So, what do you think about it? Should you still consider investing in cryptocurrencies? Let us check a few more details before you decide on this factor.
But the fact is people are still showing the same interest in investing in cryptocurrencies. There can be many reasons why people are interested in it. Here are some of the major reasons why:
Makes it Legitimate:
One best things about being taxed by the government of India is that the asset becomes legit. None of the cryptocurrencies are accepted as legit in many countries. If India is trying to impose a tax of 30 percent, then it is also showing that it is soon going to get legitimate. So, your investments are going to remain secure. There will be a law in place that will help you even if there is an issue.
The next reason why it is good to invest in cryptocurrency even after 30 percent tax is growing investors. When the crypto market is getting legitimate, then there will be more investors in it. As long as the number of people adopting it grows, the price of the cryptocurrency will be stable. So, the chances of losing money are going to be less.
When there are regulations in the crypto market, it gets easy for people to invest and trade in cryptocurrency. It becomes one of the best places for investments for Indians.
But there are other things too that you should know. These could be some reasons but they are not the exact reason. Because the Indian government is going to introduce Digital Rupee. It is just Digital Rupee that is going to be the legal tender. None of the other cryptocurrencies are legal and will not be considered legal tender.
Cryptocurrencies are such assets that can be bought but the government of that country does authorize any such transactions. The value is not decided by any governing body and hence it is not considered legal tender.
Should you still invest in cryptocurrencies in India?
It is very important for every individual to understand that investing in cryptocurrency is not authorized by any government or bank. No one takes a guarantee of any transaction done for trading or investment made into cryptocurrencies. If you are successful, you will be able to make profits with it. And if you are unsuccessful, then you will have a loss in the investments. Your government will be responsible for it.
Paying 30 percent tax is applicable only for the profit made from cryptocurrencies. That means, if you are losing any amount, and are at loss, then you need not have to pay anything. Only when you gain profits do you need to pay the tax. This kind of huge tax slab is perfect only for those who are looking for long-term investment. If you are an intra-day trader or looking for some short-term investment options, then it will be a problem for you.
There is another point to note about the tax in India is, not all the transactions done in this financial year are free from tax. That means, even those who are already into cryptocurrency trading or investments should keep this point in mind. It is not just after the introduction of Digital Rupee. So, think and start investments in cryptocurrencies in India.