In a move that may adversely impact crypto adoption in the country, India’s government said its pending tax law for virtual digital assets will not allow offsetting gains on one crypto with losses from another.
See related article: India may impose 28% GST on crypto transactions
- India’s government plans to collect a 30% tax on profits generated from every coin, instead of letting investors use the profits to set off losses accrued from another token.
- Ashish Singhal, founder of crypto exchange CoinSwitch Kuber, said on Twitter: “This is detrimental for India’s crypto industry and the millions who have invested in this emerging asset class.”
- India’s high taxation on crypto trading may make investors shy away from the sector, and instead stick to traditional instruments such as the stock market and mutual funds, where regulations are friendlier with a reduced tax burden.
- WazirX founder Nischal Shetty said on Twitter: “Discouraging crypto = discouraging innovation. Hope Indian Government hears the youth and ensures that Indian Crypto industry remains competitive.”
- India’s crypto taxation law is set to take effect April 1.
See related article: RBI calls for crypto ban in India, again