India To Tax Each Crypto Investment Independently (techcrunch.com) 12
India's proposed taxation law of virtual digital assets won't permit individuals to offset loss from one asset against profit of another, the Ministry of Finance said Monday in a move that the head of the nation's top cryptocurrency exchange termed as "detrimental" and "regressive." From a report: India proposed law for taxing virtual currencies in February this year. It proposed taxing income from the transfer of any virtual assets at 30%. To capture details of all such crypto transactions, New Delhi proposed a 1% tax deduction at source on payments made related to purchase of virtual assets. In a clarification posted on Monday, the Ministry of Finance today announced its intention to tax each digital asset investment independently, a departure from how the nation regulates transactions at the stock market.
The grand master plan of crypto (Score:1)
The plan for all cryptocurrencies isn't what they want to make you think it is. It's more sinister than the egalitarian image the crypto boys portray for it.
After the 2008 financial meltdown, cryptocurrencies were born out of it, declared to be the means by which people could be freed from banks/governments, and promised to avoid any such future meltdowns from happening ever again.
But the crypto boys watched closely the result of that meltdown, and formulated their plan: create a new form of currency, and
Good idea (Score:2)
Offsetting your losses is supposed to encourage investment in new business. It's supposed to be something you get in exchange for a social good your business is providing. A subsidy.
But this is just speculation. If there's no social benefit to speak of then we've got no reason to hand out this subsidy.
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tax doge... That name is just perfection
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The Evil of Income Tax (Score:2)
I'd say this is another example of why income tax is particularly evil, but it's really just the same evil as always -- "income" is mostly a matter of definition, and the government picks the definition arbitrarily.
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Yeah, income tax should be replaced with transaction taxes(*), like a Tobin tax but broader in scope, applying to all financial transactions not just currency conversions. At least for income up to at least the poverty level but preferably the national (or State) average income. Above that, progressive income taxes should apply.
But rich people and corporations hate them (because they're much harder to dodge) so that will never happen. They like income taxes because it's not hard for the rich to structur
Easy enough to work around (Score:1)
Create a holding company whose only significant assets are a fixed amount of a specific crypto-currency.
Go public, but maintain 51% of the voting rights.
The shares trade on the open market as a stock, but their underlying value is based in a currency.
This will be useless to people who actually NEED to buy, hold, or sell the currency, but it will let speculators invest, er, I mean, speculate, while being taxed as a stock investment.
Plus, the trading costs will probably be much lower - no "gas," just brokerag
30% income tax is still fine, t's the 1% TDS deduc (Score:2)
It's the 1% TDS deduction on EVERY transaction (unless you do less than like $200 cumulative for whole year), which is going to kill the entire thing.
The guy who is paying has to deduct 1% then deposit it in fiat online to govt (IRS equivalent called Dept of Income Tax or DIT) and provide receipt to other party with both parties tax ID numbers (PAN)
So all smart contracts and crypto-crypto swaps and liquidity pools / staking etc or anything automated gets almost stopped
Traders or those doing many transaction