India to tax each crypto investment in a distinct manner

India is all set to tax each crypto investment separately, as noted in a new parliamentary note which sought to answer all the questions related to crypto investment and their taxation in the nation. Moreover, the official statement also added that the status of these blockchain-based assets is not completely legal. 

Moreover, TheCoinRise recently reported that India is aiming to impose a tax of 30% on all the cryptocurrency transactions in the nation. Other than this 30%, a TDS or Tax Deducted at Source will be cut out at a rate of 1%.

“As per the proposed section, any income from transfer of VDA shall be taxed at the rate of 30%. Further, while computing the income from transfer of VDA, no deduction in respect of any expenditure (other than the cost of acquisition) or allowance is allowed.” 

Crypto taxation policy of India not accepted positively

The crypto taxation policy of India was not accepted positively by people in the nation. The co-founder and CEO at CoinDCX, Sumit Gupta, a cryptocurrency exchange operating in the nation, expressed his thoughts on the same. 

“Countries across the globe are adopting a pro-crypto approach so they become crypto hubs and get the advantage,” Gupta said. “India has immense potential to become a leader in the #crypto space but 30% taxation may affect our chances by discouraging adoption and innovation.”

No consideration of loses

It is also important to note that as per the crypto taxation policy of the nation if you have invested $100 in Bitcoin and $100 in Solana and you are at a loss in both, since the market remains bearish as noted in our Bitcoin price analysis and Solana price analysis, you won’t have to pay any tax. On the other hand, if you’ve made a profit of $50 with LUNA, you will have to pay 30% tax on this profit. This policy has been called unjust because the government of India is not considering the losses of the investors.