One who is controlling the finance only see the number in tax but they often fail to realize that by decreasing the tax rate they can increase the number of people participating in the crypto field thereby increasing the revenue generation overall. Which is why countries with low tax rates often get attention from rich and those country's economy will slowly starts developing from the investment and tax opportunity they create.
absolutely true
and 30 % tax makes no sense whatsoever on this
this is not gambling, this is not lottery, this is investing and calculative risk
they could have easily put it in the same capital gain tax as for stocks
which would have resulted in more people investing in crypto legally
more transparent transactions and more tax collected over gains in time
The real reason is explained above, it's the RBI and the one who controls the baking doesn't want the people to have an option to chose alternative currency that can end up backfiring them whenever they decide to let the inflation rate slid out of control. Indian currency is getting weaker over the years no matter who comes in power and one who realize this will stop stacking rupees.
Yes the current government doesn't want people to get into crypto because some old government officials and ministers think that crypto is dengerous for the economy. Also the banking lobby is consistently promotion anti-crypto campaign which are further scaring people away.
No wonder, any financially rich person wants to leave India at any cost. It's the mentality to blame. 30% tax is just a tool to scare people. Also government uses income tax notices if they find out you have dealt in crypto.
Banks not just from India but all around the world took the same stance that bitcoin is used by criminals and illegal activities but others evolved from the position while our government made no development at all other than collecting tax on it. These stupid tax policies keep forcing people out of the country and making many new rich countries for example atleast 30-40% of USE's rich person are Indians that gives us clear picture why we are still struggling with everything.