Yesterday i.e. 1st February 2022 India announced its budget, and in the session, it stated that crypto transactions will be taxed at the rate of 30%. There is very less to be sure of what is the impact of the following decision[ +ve or -ve]
I see that taxing cryptos has one good pro here i.e. it can be said that cryptocurrency is legal in India or maybe?
There are several cons as 30% is a big share.
Is there any possible way to legally avoid the taxations?
One possible way is to never convert your holdings into INR. The government has taxed cryptocurrency profits and profits can only be calculated if you sell your digital assets for INR. So one possible way is to just sell your crypto holdings into Stablecoins. But eventually, whenever you make a withdrawal from your account to use it you will have to pay taxes at flat 30%. Now the problem here is that even gifts have been taxed in the hands of the recipients, which means even the P2P mechanism for selling won't work. Also even TDS is proposed which means exchanges will deduct TDS when giving withdrawals to users which means evasion is not at all possible.