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.cmsYes, they have always been taxing what is not legal. Gambling they tax heavily and gambling is not legal within the territory of India but yet from the very start gambling income is taxed heavily in the country. Even though I don't agree with this sort of draconian law on crypto but still 30% tax is still bearable. What is not at all bearable is the hefty 1% TDS that will be levied on sale proceeds every time you will make a sale. This doesn't make any sense and is irrational and is a deliberate technique to stop crypto trading in India. What I see from here is that they might in the coming months ban the foreign exchanges altogether and then eventually ban cryptos. They think this way they might get rid of it in phased manner.
I agree with you Teosanru , I think India government is trying to ban crypto trading by imposing tax on it.