Crypto Tax in India Is Crushing Revenues, Here’s How Bitcoin ETFs Can Save You

The post Crypto Tax in India Is Crushing Earnings, Here’s How Bitcoin ETFs Can Save You appeared on BitcoinEthereumNews.com.The post Crypto Tax in India Is Squashing Earnings, Here’s How Bitcoin ETFs Can Save You appeared first on Coinpedia Fintech News India’s crypto investment scene is under pressure. Despite 1 crore in current Bitcoin trading volume, the Indian tax regime is stifling growth with its extreme tax policies. Investors as soon as enjoyed a massive 123% gain on Bitcoin holdings recently– but now, they’re calling the existing tax system ‘daytime break-in.’ The Severe Reality of India’s Crypto Tax Under India’s existing tax program, crypto profits are taxed at a flat 30%, plus a 4% surcharge. To make matters worse, every crypto trade– regardless of earnings or loss– is subject to a 1% TDS (Tax Deducted at Source). That’s not all: No set-off: Crypto losses can’t be set off against any other income. No carry-forward: Losses likewise can’t be carried forward to future tax years. No holding distinction: Whether you hold Bitcoin long-term or trade short-term, the tax rate remains the very same. This leaves Indian crypto financiers without any room for tax planning and no security for losses, making the landscape extremely limiting. The Tax-Saving Loophole: Bitcoin ETFs In the middle of this hard environment, Bitcoin ETFs are becoming a wise alternative for Indian investors aiming to save money on taxes. Here’s why Bitcoin ETFs are dealt with more positively: Not categorized as VDAs: Bitcoin ETFs are thought about foreign shared fund units, not Virtual Digital Assets. Lower tax rate: If held for more than 24 months, they are taxed at simply 12.5% as long-lasting capital gains, compared to the 30% flat on direct crypto. No TDS: Bitcoin ETFs are exempt to the 1% TDS guideline. Set-off & continue: Losses can be set off versus other capital gains and carried forward into future years. According to some HNIs (High-Net-Worth …