India Announces 30% Tax on Crypto Profits, the Highest Tax Band In the Country

There has been a phenomenal increase in transaction in virtual digital assets. The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime.

Post the pandemic, India’s crypto investing community has been growing at a massive speed with local investors putting billions of dollars into the market.

With the crypto market hitting record highs last year, the trading activity on local Indian exchanges has also shot up significantly.

As per industry estimates, currently, there are 15 to 20 million crypto investors in India.

The collective crypto holdings of Indian investors is somewhere around 400 billion INR or $5.37 billion.

While the Indian Finance Minister announced heavy taxes on profits derived from crypto trading, she said that the losses cannot be offset against any other income.

One thing is clear that the government is willing to recognize the crypto asset class. Thus, we can expect further participation from Indian investors this year.