Indian investors filed a petition to push the government to minimize the amount of tax implemented on crypto with more than 52,000 signatures received just in a few hours. The respective petition recommends some modifications to the proposed regulation, stating that the laws in their current state would be harmful to the economy as well as the investors across the country. The decision of India to legalize the market of cryptocurrency by the forced implementation of taxation was responded to positively in general.
Nonetheless, the choice to implement tax over the digital assets at 30% was confronted with criticism mentioning that a considerable part of the investors’ profits would be taken off from them. in this respect, this above-mentioned petition aims at demanding some reduction in the percentage of the tax that the government is determined to level over the crypto funds. A significant support has been given to the respective petition as more than 52,000 signatures were obtained by it in the time of only some hours.
Crypto taxation laws under fire
The petition by Change.org states that the country has up to 15-20M investors of cryptocurrency who are devotedly involved in the development as well as the deployment of several crypto services. It stated that the industry of cryptocurrency can significantly assist the country by generating tax revenues for the government, bringing tax payments from the businesses, incorporating FDI investments, along with the provision of employment, on the revision of the respective tax proposal.
Particularly, it does not intend crypto to be classified under the label of gambling and betting, as well as the taxation just like on the transactions of the stock market. Thus, it suggests that taxation of up to 15% should be implemented on the short-term gains in crypto. In addition to this, the reduction in the TDS from 1% to 0.05% is also proposed by the petition along with the permission of carrying forward in the case of loss.
Prime Minister of India voices against the digital rupee
Narendra Modi (the Prime Minister of India), on 3rd February, expressed his thoughts over a digital rupee. He stated that some innovations would be brought by the digital rupee with the creation of opportunities as well as a revolution in the fintech field. In the words of Modi, the central bank would regulate the assets and convert them to cash. He revealed that the hazards existing in the online transfers, as well as the digital payments, would be eliminated by a CBDC.