- The lawyer mentions the rule of crypto taxation as ruthless and says that it is because the officials do not have that much understanding of the technology.
- Tech startups have continued to work on Web3 projects in the country in spite of the unpredictability of regulations in the country.
- Every transaction carried out by users has tax associated with it.
A lawyer has claimed that the crypto tax offered by the Indian government often referred to as “draconian” will somehow replace the blockchain and crypto technology. The claims have been made keeping the point in mind that the government thinks that it is used for carrying out illegal practices such as money laundering or terrorist financing.
The lawyer of the Supreme Court of India, Amit Kumar Gupta submitted a research paper on the topic “Crypto Taxation in India” in the Peer-to-Peer Financial Systems Workshop 2024.
The legal practitioner further went on stating that the taxes imposed over the crypto and blockchain world in India are heavy but very chaotic and are not regulated properly. He told a reliable media source that this is because the Indian regulators don’t know much about the real uses as well as the capabilities of Web3 technologies.
Crypto taxation is ruthless
On April 1, 2022, a new regulation came into force in which citizens need to pay around 30% tax for crypto activities in India. As per the lawyer, the tax is applied to the profits and the users are not allowed to nullify their losses. Even every transaction carried out by users has tax associated with it.
The lawyer mentions the rule of crypto taxation as ruthless and says that it is because the officials do not have that much understanding of the technology. He also highlighted that the taxation is being done to obstruct people by using technology. He further added, “The officials believe that they will not allow anyone to use the technology as it is only used for money laundering as well as terror funding kinds of activities.”
The Supreme Court’s lawyer has also claimed that the Indian government believes that crypto is more terrible than wagering. The new tax rule will kick out Indian crypto entrepreneurs out of the boundaries, claimed by the lawyer.
He further went on to say that there is no clearance and instead they have harsh conditions. Any citizen who works with cryptocurrency or blockchain and makes a profit, he is obliged to leave the country.
Tech Startups still interested in Web3 projects
Tech startups have continued to work on Web3 projects in the country in spite of the unpredictability of regulations in the country. The chief executive officer of NC Global Media, Rohit Mohan said that India is very much alert in the matter of cryptocurrencies, despite the fact that they are driving the innovation.
He further said that, “Significant players are yet to come in the market. At the same time the adoption of crypto at a wider level can take time, and India is a potential country to set an example.” According to him, partnership along with user education contributes to the supreme importance.
