Tax on cryptocurrency in India
Even after imposing an income tax of 30% on cryptocurrency, the government’s stomach has not been filled and the government is now considering. To bring cryptocurrency under GST and not under GST only.
In order to bring the luxury item under GST, that is, to bring it within the highest tax slab which is 28% GST, that is, after the implementation of GST on cryptocurrency, if you buy or sell cryptocurrency. tax on cryptocurrency in India
On top of that, you will also have to pay an additional 28% indirect tax of GST to the government. Direct tax will go to the government out of your profit.
Along with that, whatever transaction you will do, there will be an indirect tax of 28% ie GST, as you can see GST Council TO consider SLAPPING Highest 28% tax on cryptocurrency, that is, 28% tax on CRPTO currency is being considered.
GST COUNCIL IS CONSIDERING LEVYING 28% TAX ON CRYPTOCURRENCIES AND RELATED SERVICES Whatever is related to cryptocurrencies, NEFT, etc. will be taxed at 28% on all those GST council meetings, the date of which is not decided yet.
As soon as the date of the meeting is decided, this point will be placed inside that meeting and there is a maximum chance that it will be approved and within some time to come there is a GST of 28% which will start levying on crypto.
The idea of the government is to keep crypto SAME Like lottery casinos, betting horse races i.e. horse race betting, but whatever tax is levied here, income tax is levied at 30% flat there also. tax on cryptocurrency in India
The government has imposed a tax of a flat 30% on crypto as well, apart from that, the GST of 28 percent is also levied on the price of that ticket if you buy lottery, then the government wants the same crypto, if you buy it, then 28 percent on you. GST will be implemented.
As you can see, the plan is to impose the highest GST tax rate of 28 percent, so till now the highest rate under the GST Act is only 28 percent, so the same rate is being imposed on cryptocurrency as well.
As you would know, 30 percent direct tax has been Already within the Union Budget. Now there is a government in the idea of levying 28% GST on it, so let’s see once.
How can it be calculated? See, till now the information has not come in any place related to it, so this is the calculation, we are doing ASSUME, maybe it will be calculated in the same way, tax on cryptocurrency in India
So now let’s once understand how GST is on it and how income tax Should be engaged Suppose you buy a cryptocurrency of ₹ 10,000, then you will not to pay ₹ 10,000, you have to pay ₹ 12,800 i.e. 28% GST and extra for that.
If you pay ₹ 12,800, then only you will get ₹ 10,000 in cryptocurrency, the rest of which is tax, the amount will be deposited with the direct government.
Now suppose that the cryptocurrency of 10,000, its value increases to ₹ 20,000. Now if you sell that 20,000, you will get only ₹20,000 net amount.
If ₹20,000 is a profit of ₹10,000, then you will have to pay a tax of 30% on the profit of ₹10,000.
If income tax is 30 percent + health education cess of four percent on top of that, then you will have to pay income tax of ₹ 3,120.
The net amount will be saved with you ₹ 6,880 The profit left with you, 6880 out of that profit you had made an OD purchase, where you had paid tax all ready for ₹ 2,800, then out of ₹ 6,880, you can subtract ₹ 2,800, which will be your net profit.
That is, the profit that you earned ₹ 10,000, you are left with only ₹ 4,000 in the net. That means about 60 percent of your tax will be gone.
This is the full hundred percent profit, that is, if you sell a bill of 10,000 when it is 20,000, then you get a profit of ₹ 4,000, but if you buy any currency.
If you buy any cryptocurrency, then you are already paying 28 percent GST there, so you have to earn your 28% already on it while selling, then only you will come to break even No profit no gain. tax on cryptocurrency in India
After that, the extra 28% you will earn will be your profit and in that profit also you will have to pay 30% income tax to the government.
That is, if GST is levied on it, then you will have to earn at least 28 to 30 percent first, to recover your post, only after that you can think of profit, then let’s see how it is implemented.
How much tax Should I pay on crypto in India?
tax of 30% plus surcharge and cess
Do I pay taxes on crypto losses?
If you sell cryptocurrency in a taxable investment account in 2022, you’ll be responsible for paying taxes on your profits. You’ll also need to report your crypto losses if you want to snag a tax deduction
How do I file taxes for crypto?
1. Calculate your crypto gains and losses.
2. Complete IRS Form 8949.
3. Include totals from 8949 on Schedule D.
4. Include any crypto income.
5. Complete the rest of your tax return.
How can crypto tax be avoided in India?
DEX (Decentralised Exchanges) like PanCakeSwap and Uniswap and P2P (Peer-to-Peer) transactions can help avoid taxes on crypto in India.