Recently India has passed a crypto bill to tax crypto income by 30% but at the same time claiming that taxing cryptos doesn't make them legal and states it's country's sovereign right to tax crypto and this atrocity doesn't stop here as they have mentioned that the decision about banning crypto or legalizing it will taken after further consultation.
Can they tax something which is not legal? How can a country tax something which is not legal? Moreover they still have plans of banning crypto since they are not clear about their stands on legalization. Not sure if it's an attempt to unofficially break the crypto market in India or what's going on.
Share your thoughts on this.
Source:
https://www.businessinsider.in/cryptocurrency/news/taxing-cryptocurrencies-does-not-give-them-legal-status-clarifies-indias-finance-minister/articleshow/89500097.cmsAs i understand this, india will impose 30% taxes on crypto, once they legalize it. How can they offically take tax from soemthing which is not yet legal in thier country.
However i do not believe this is the fianl verdict of the government, there may be many twists and change in statements. Consider the example of russia as they also given such statemnets of legalization of bitcoin and then not to legalize it.
Governments look really confused when it comes on the legal status of bitcoin.